Editor’s Note
This article reports on the bankruptcy protection filing of luxury e-commerce platform Ssense. The filing, made in Canada, is cited as a strategic move to manage tariff impacts and shield the company from creditor-led asset sales.
The luxury e-commerce platform Ssense, once valued at $4 billion, has filed for bankruptcy protection.
According to media reports, Ssense has filed for bankruptcy protection in Canada to address unexpected business impacts from tariffs and to prevent creditors from forcing a sale of the company. In an internal letter to employees released last Thursday, Ssense CEO Rami Atallah stated:
Twenty years ago, like Farfetch and Yoox Net-a-Porter, Ssense carved out a niche in the luxury e-commerce space by attracting mainstream luxury brands while also introducing a large number of niche, avant-garde brands. In 2021, Sequoia Capital China made a strategic investment in Ssense, at which time its market valuation exceeded $4 billion.
As the overall luxury market cools, Ssense’s performance has come under sustained pressure. In May of this year, it laid off over 100 employees, representing 8% of its workforce, marking the third round of layoffs in the past year. Compounding the difficulties, since August 1st, the United States has imposed a 35% tariff on goods imported from Canada, causing costs to surge for Ssense, which is highly dependent on the US market.
From widespread success to successive setbacks, the difficulties in luxury retail are hard to alleviate. Earlier this month, the famous Italian e-commerce platform Luisaviaroma also faced bankruptcy proceedings due to soaring operational costs and strategic missteps.
Vhernier, the high jewelry brand recently added to the Richemont Group, is accelerating its expansion in the Asian market. Its first boutique is set to open at The Peninsula Hong Kong by the end of this year, a move confirmed by the hotel.
In May last year, Richemont announced the acquisition of 100% of Vhernier’s equity from the Traglio family. Founded in 1984, this Italian brand is known for its sculptural designs and innovative materials, with its main markets in Europe and North America. According to estimates by Luca Solca, an analyst at investment bank Bernstein, Vhernier’s revenue prior to the acquisition was between 50 million and 100 million euros, comparable in scale to Van Cleef & Arpels and Buccellati when they were acquired by Richemont in 1999 and 2019, respectively.
Vhernier is attempting to replicate the successful paths of these two brands. Richemont has retained family member Isabella Traglio as Design and R&D Director and has also brought in former Buccellati Executive Vice President Gianluca Brozzetti to take the helm, with the primary task being to expand the owned retail network. Currently, Vhernier operates 16 boutiques worldwide.
On August 28, fashion brand H&M unveiled its renovated flagship store at Shenzhen’s 1234space. As its largest flagship store in South China, covering an area of 1,764 square meters, it offers a full range of men’s, women’s, and youth apparel.
Two days prior to the opening of this flagship store, H&M’s Shenzhen Grandjoy Mall store opened its doors. The consecutive openings of these two stores in Shenzhen demonstrate the apparel giant’s commitment to deepening its presence in the Greater Bay Area and upgrading its retail footprint in China.
Saed El-Achkar, President of Retail for Greater China at H&M Group, stated:
For the Qixi Festival, the Italian jewelry brand Bvlgari presents heartfelt gifts crafted with ingenuity.
The Bvlgari Divas’ Dream Qixi Special Edition necklace is crafted in 18K rose gold with a fan-shaped curve, adorned with diamonds and pink sapphires set upon lustrous mother-of-pearl. The LVCEA watch features a pink three-dimensional dial crafted with marquetry, with a red tourmaline crown echoing the pink sapphires of the necklace, infusing moments of affection with pink romance.
The Bvlgari Divas’ Dream Marquise Qixi Selection handbag transforms heartfelt sentiments into intimate companionship, with a soft starry rose pink hue reflecting the tender affection between lovers. The bag’s elegant curves cleverly integrate the “Calla” pattern, resembling a crescent moon bridge, gently connecting love and longing.