A coalition of lenders led by Bank of Montreal is urging the liquidation of SSENSE, the high-end fashion e-commerce platform, after a proposed founder-led buyout stalled. The move signals growing pressure on the retailer’s financial structure following sustained losses and declining revenue.
- Lender group led by Bank of Montreal (BMO) is pushing for SSENSE liquidation
- SSENSE reported a $143 million net loss in FY2025 and 12% revenue decline
- BMO holds $190 million in outstanding debt, making it the largest creditor
- Founder-led buyout talks have collapsed amid financing and valuation disputes
- Liquidation would trigger a court-supervised asset sale process
- SSENSE operates 11 physical stores and serves 42 markets globally
A group of lenders, led by Bank of Montreal (BMO), has formally advanced a proposal to liquidate SSENSE, the Montreal-based luxury fashion retailer, after negotiations for a founder-led recapitalization collapsed. The lender consortium, holding a majority of SSENSE’s senior debt, argues that liquidation offers a more predictable recovery path than the uncertain terms of a founder buyout, which had been under discussion since late 2025. The company reported a net loss of $143 million in FY2025, a 27% increase from the prior year, while revenue declined by 12% to $398 million. These financial setbacks followed a restructuring that reduced its workforce by 18% in 2024. Despite a strong brand presence in North America and Europe, SSENSE has struggled to maintain profitability amid heightened competition from global luxury platforms. Under the liquidation proposal, assets would be sold off through a court-supervised process, with proceeds distributed to secured lenders first. BMO, holding approximately $190 million in outstanding debt, is the largest creditor. Secondary creditors, including a syndicate of private equity lenders, have expressed support for the liquidation plan, citing the lack of viable alternative financing options. The move could impact thousands of employees, as well as suppliers and partners across the fashion ecosystem. SSENSE operates 11 physical retail locations and maintains digital storefronts in 42 countries. The potential closure would also affect Montreal’s retail and tech sectors, where the company has been a notable employer and innovation driver in the digital luxury space.