What: Showfields is going bust and all stores are to close.

Why it is important: The DTC approach to department stores was interesting, but not able to be profitable enough.

Showfields, known for showcasing direct-to-consumer brands in a department store-like setting, is closing its remaining stores in Brooklyn, New York; Washington, D.C.; and Los Angeles, following the closure of its Miami and Manhattan locations last year. This decision comes amidst ongoing bankruptcy proceedings that the company filed for in October.

The retailer informed its vendors through a memo, advising them of the possibility to file claims as creditors for time paid but not utilized. Showfields also noted its inability to cover return-to-vendor shipping costs. The closures reflect the company's financial struggles, including issues with debtor-in-possession financing and landlord concerns.

Showfields, launched in New York City in 2019, initially gained attention for providing physical retail space for mostly online DTC brands, a concept that was novel at the time. However, the retail landscape has since evolved, with many DTC brands expanding into physical retail through partnerships or their own stores, and some being acquired by larger retail chains.

The company's situation parallels that of Neighborhood Goods, another retailer partnering with DTC brands, which has also recently closed some of its locations. Showfields' closure signifies the challenges faced by innovative retail concepts trying to bridge the gap between online and physical retail in a changing market.

All Showfields stores to close