Showfields, the self-described "most interesting store in the world," recently closed two of its four stores and filed for bankruptcy protection.

WHO: Launched in 2019, Showfields positioned itself as “the most interesting store in the world.” The lifestyle discovery store features rotating, themed curations of mission-driven products, art, and events to make the retail experience more interactive and engaging.

Assortments tend to be built around wellness, home, food and beverage, beauty, ready-to-wear, accessories, and tech brands that are not widely distributed. The retailer doesn't work on a traditional wholesale model predicated on purchasing inventory. Their model charges a fee based on the scope of the presentation to display product. Showfields flips the merchandising assortment every six months.

WHY: Showfields was “plagued with lower than expected revenue streams” leading up to and during the pandemic due to low sales from the vendors and artists it showcased.

IN THEIR OWN WORDS: “It pains me to leave our NoHo and Miami stores but we see great things ahead,” CEO and co-founder Tal Nathanel said in a statement. “While it took us a few years to fine-tune, today we know the right economic structure for new locations, as we have shown in our newest stores. We remain dedicated to our mission of redefining the way people discover and experience retail.”

DETAILS:

• Showfields has filed for bankruptcy and has lined up financing from existing investors to restructure through a subchapter of the Chapter 11 process. The Small Business Reorganization Act, Subchapter V, a form of Chapter 11 bankruptcy, was devised during the COVID-19 era to help small businesses keep operating, reorganize, and maintain control of their finances without creditors taking over.
• The new money will be used for completing the sunsetting of the Miami and Manhattan stores, paying outstanding bills, increasing marketing, expanding the Brooklyn store, and for potential European expansion.
• The company entered into a loan agreement with the Small Business Administration, as well as agreements with debt financing company Pipe Technologies and Merchant Cash Advance companies to continue operating.
• According to the court filing, Showfields had a little over $3,000 in cash on hand when it filed on October 6 and owes between $1 and $10 million. 
• Showfields remaining two stores are the 20,000-square-foot store in the Georgetown section of Washington, and the store in the Williamsburg section of Brooklyn, which will be expanded by 2,500 square feet to 14,000 square feet to accommodate brands relocating to the site from the two stores that were closed. Both stores are profitable. 
• About 20 employees, mostly part time, had to be let go. 
• In March 2022, Showfields raised $20 million with Hanco Ventures, Swan and Legend Ventures, MUFG Capital, and others to fuel expansion.