Agenda-setting intelligence, analysis and advice for the global fashion community.
In an effort to cut costs, the luxury resale platform will lay off 230 employees and close four stores this year, the company said in an SEC filing Thursday.
The layoffs will affect 7 percent of its workforce. The RealReal will close its San Francisco and Chicago flagships, as well as two additional stores in Atlanta and Austin. The company will also shutter two consignment offices and reduce its office spaces in New York City and San Francisco.
The RealReal “will continue to evaluate its real estate presence as it deems appropriate to create efficiencies and to address trends in the marketplace and macroeconomic factors,” it said in the filing.
A number of retailers and brands have taken steps to reduce headcount in recent months. Earlier this week, Neiman Marcus Group announced plans to eliminate about 5 percent of its workforce. In January, Ssense laid off 138 employees, or also about 7 percent of its overall workforce.
ADVERTISEMENT
Last year, The RealReal announced it was on track to be profitable by 2024. In the past year, its shares have lost more than 80 percent of their value.
Learn more:
Can Fashion Resale Ever Be a Profitable Business?
Companies like The RealReal and ThredUp promised Wall Street that with scale comes profit. But operational costs and competition have kept them in the red.
