San Francisco, California-based The RealReal, an online and brick-and-mortar marketplace for staff-authenticated luxury consignment clothing, fine jewelry, watches, fine art, and home decor, has announced a reorganization that will include revamping its real estate footprint and headcount.
The company is targeting six stores and 230 employees.
According to an SEC filing...
"On February 15, 2023, The RealReal, Inc. announced a savings plan intended to reduce operating expenses. The Company is reducing its headcount and rationalizing its real estate footprint."
"Under this plan, the Company will (a) terminate approximately 230 employees, representing approximately 7% of its workforce, and (b) reduce its real estate presence."
"At this time, the Company intends to (i) close two flagship stores (SanFrancisco, California and Chicago, Illinois), two neighborhood stores (Atlanta, Georgia and Austin, Texas), and two luxury consignment offices (Miami, Florida and Washington, D.C.), including any co-located logistics hubs, and (ii) reduce its office spaces in San Francisco, California and New York, NewYork."
"The Company 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."
The company has been criticized for allegedly selling counterfeit goods.
In November 2022, The RealReal president, Rati Sahi Levesque, admitted that The RealReal spent too much money trying to sell home, art, and kids' items that are too expensive to ship.
It is believed that the company may be an acquisition target as it continues to face significant competition in the consignment marketplace.
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