Independent fashion designers likely to lose out in SSENSE bankruptcy
In a bankruptcy filing in late August, the Montreal-based luxury retailer SSENSE cited a liquidity crisis brought on partly by the unpredictable tariff regime in the United States. At the time of the filing, some independent designers who work with the company said they were owed tens of thousands of dollars, but hadn鈥檛 been paid in months. But Vivek Astvansh wouldn鈥檛 recommend taking legal action. 鈥淪uppliers are unsecured creditors because they don鈥檛 have any investments or collateral in the company,鈥� the Associate Professor of Quantitative Marketing and Analytics told The Montreal Gazette. 鈥淲hen a supplier sends goods to a company, they extend them credit. The supplier has nothing but a piece of paper that says they鈥檒l be paid in thirty days. And if the company faces financial distress, the supplier can do literally nothing. They are at the bottom of the food chain, and receive very little money when a company goes bankrupt.鈥�
