The retailer has been forced to close two department stores - one in Manhattan in New York City and one in Miami.
Showfields filed for Chapter 11 bankruptcy protection. At the time of the filing, the company had about $3,000 in cash and between $1 million and $10 million in liabilities.
In the intervening months, the retailer has been forced to close two department stores - one in Manhattan in New York City and one in Miami. Despite this, Showfields announced plans to develop the chain in other locations.
The decision to initiate bankruptcy in the company was explained by the desire to focus on the business's profitability. Representatives of Showfields emphasized that the company's financial condition went down back in the pandemic.
The company has entered into a loan agreement with the Small Business Administration and agreements with Pipe Technologies, a debt-financing company, and Merchant Cash Advance companies to continue operations.
"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."
Showfields has positioned itself as "the most interesting store in the world". The retailer opened its first store in New York City in 2019 and introduced new stores in Brooklyn and Washington, D.C. in late 2022.