The luxury slowdown also posed a unique problem for Ssense, which is a champion of emerging designer labels: in an industry downturn, customers tend to spend more with well-known brands, rather than gambling on new names that might not stick around. Another problem cited by designers and brands that did business with Ssense was the size of its buys — as inventory piled up and luxury spending dipped, the biannual Ssense sale became a bigger event, training customers to wait for the significant markdowns.
Ssense is one of several multibrand luxury retailers currently riddled with challenges. Last month, Italian retailer Luisaviaroma filed for court protection; Matches went into administration last year; and Farfetch was sold in a fire sale. The effect on independent and emerging talent has been significant in the past: the closure of Matches, which was also known for stocking smaller brands, has meant that several have folded or at least have not returned to London Fashion Week yet. Before that, Opening Ceremony’s closure in 2020 reduced the retail opportunities for young talent and even led to some brands going under.
This next phase, and whether or not it’s successful, will carry implications for fashion’s indie designers, many of whom relied on Ssense as a retail outlet that supported emerging fashion. Ssense was a proud first stockist for many of today’s independent and emerging designers, which they leveraged to produce their collections on a larger scale and get into more retail doors. When news broke that Ssense had filed for bankruptcy protection, it raised concerns about the impact on the indie designer landscape, given that many designers rely on Ssense as a retail partner.
As the bankruptcy process has played out, some brands said they were holding back on sending orders, while others are trying to secure payments and pre-payments before shipping, to minimise financial exposure. The ability to continue operations with new financing and creditor protection is “good news”, says Gary Wassner, CEO of Hilldun Corporation, which provides financial services to fashion brands and receives payments from Ssense on behalf of the brands he works with. Last week, when Ssense’s path forward was up in the air, he said, “We are unable to approve their orders until we know what the courts determine the path forward will be. Our clients are not going to want to ship until they know what the entity is that they’re shipping to and how it is going to be financed.”
For now, sales at Ssense are back on. “We are grateful for the unwavering support of our community, which reinforces our global relevance and the strength of our brand,” said Atallah. “We now have the time, resources and structure in place to begin the process of rebuilding a stronger Ssense.”
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