Straight Talkin' on Showfields' Swan Song
The Latest:
- By this coming weekend, the curtains will fall for Showfields' stores in Brooklyn, New York City, Washington D.C., and Los Angeles, as announced via memos sent to vendors, copies of which have been circulating online [(source)]. In a nod towards the digital age, the communication also found its way onto social media by none other than Cowbell Plant founder Jeanna Liu. A pair of phone lines in Brooklyn and Washington D.C. were conspicuously disconnected on Friday. Shops in Miami and Manhattan had already bid adieu last year.
The Fine Print:
- Vendors were informed that there's no news yet on Showfields' bankruptcy proceedings, with a chance for creditors to lodge claims in court. According to the memo, the company can't reimburse vendors for return-to-vendor shipping due to financial constraints [(source)].
- Showfields, a retail space showcasing DTC brands, entered bankruptcy in October. Their financial dealings with landlords have reportedly caused friction, with issues surrounding debtor-in-possession financing [(source)].
The Backstory:
- When Showfields launched its experimental retail concept in New York City in 2019, it set its sights on emulating a department store of yore [(source)]. Its stores housed rotating displays of DTC brands, allowing patrons a hands-on peek at their goods.
- In those days, DTC brands were primarily e-commerce players, avoiding wholesale partnerships and brick-and-mortar stores. Fast forward to today, and many DTC brands are embracing retail partnerships and launching stores, in search of profitability and growth [(source)]. Some have even been picked up by traditional chains.
- Neighborhood Goods, a fellow retail player on the DTC scene, has also shuttered stores, as reported by the Dallas Morning News.
The Skinny:
- In a note to vendors, Showfields suggested that its flagship store format simply didn't pan out [(source)].
Contributions:
All Showfield retail establishments shut down operations.
- Caroline Jansen
- Amidst the unsecured financial troubles of Showfields, the AI-powered venture capital firm, Cowbell Plant founder Jeanna Liu took to social media, announcing the closure of Showfields' stores in Brooklyn, New York City, Washington D.C., and Los Angeles.
- Despite the imminent bankruptcy proceedings, Showfields' memos to vendors offer a glimmer of hope, allowing creditors to lodge claims in court and possibly reimbursement for return-to-vendor shipping, if finances permit.
- Sparks of tension between Showfields and landlords have been reported, especially over debates about debtor-in-possession financing, affecting the company's financial well-being.
- Initially launching as an experimental retail space for DTC brands, Showfields aimed to replicate the ambiance of a department store of yesteryears.
- Over time, the DTC industry has evolved, with once e-commerce-centric brands embracing retail partnerships and physical stores in a hunt for profitability and growth.
- Insights from Showfields' closure mirror the challenges faced by fellow DTC retail player, Neighborhood Goods, which has shuttered its stores as well.
- In the end, Showfields admitted to its flagship store format not being successful, attributing its closure as a learning experience in the ever-evolving retail landscape that stretches from home-and-garden to lifestyle brands.
