The company did not disclose the amount of the new funding, which came from existing investors. The new money will be used for completing the sunsetting of the two stores closed earlier this year, paying outstanding bills, increasing marketing and expanding the Brooklyn store, which continues to operate, among other purposes revolving around the restructuring, Tal Nathanel, chief executive officer and cofounder of Showfields, told WWD.
About a year ago, Showfields started examining the possibility of launching stores in Europe. Despite the restructuring, that plan is still on the table, Nathanel said. Nathanel said the 11,500-square-foot Brooklyn store will be expanded by about 2,500 square feet to accommodate brands relocating to the site from the two stores that were closed.Asked what caused the two closings, Nathanel replied, “The pandemic was a very big factor in accelerating the inherent problem of, which is the lack of flexibility” revolving around costs and leases. “But it’s important to take responsibility. Did we execute everything perfectly? No.
He said that many of the brands displayed at Showfields need to be in Europe, on high streets to grow their businesses. “We do have a city in mind. I can’t disclose it yet,” Nathanel said.