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The multi-brand specialty retailer on Friday filed for Chapter 11 bankruptcy, following a continued decline in sales post-pandemic that left it unable to pay back mounting debt.
In March 2020, at the onset of the pandemic, Showfields entered a loan agreement with the US Small Business Administration for $500,000 and financing firm Pipe Technologies for $1.4 million. Showfields had a little over $3,000 in cash on hand when it filed on Oct. 6. The company now owes as much as $10 million, according to a court filing.
Showfields, which was founded in 2017, opened its first store in Manhattan’s NoHo neighbourhood in 2019 as a physical retail destination for consumers to discover emerging digitally-native fashion, beauty, wellness and home goods brands. The company went on to open stores in Brooklyn, Miami, Los Angeles, and Washington, DC.
The retailer, however, closed two of its five stores in recent months amid past-due lease payments and a drop in membership fees it collects from the cohort of brands it sells. Showfields shut down its location in Miami in July, and its original store in NoHo in September. It will continue to operate its stores in Brooklyn, Washington, DC and Los Angeles.
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Showfields is the latest speciality retailer to file for bankruptcy this year. Wedding retailer David’s Bridal filed for bankruptcy in April, owing up to $500 million in debts.
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