AM I NEXT? NO LOVE AT THE REALREAL

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.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT OKABASHI

Buford, Georgia-based Okabashi, a footwear company, and an Adidas manufacturing partner, has announced a major workforce realignment to respond to unanticipated market conditions.

The reduction in force will impact two-thirds of the workforce, or 142 employees, following the cutback in Adidas/Yeezy products following the Adidas announcement that it was discontinuing its partnership with Ye (Kanye West) following unacceptable anti-Semitic remarks.

According to a company spokesperson, “As of right now, there are not enough orders to keep all employees busy with work. Very regrettably, Okabashi is announcing a layoff of 142 employees effective immediately.” Three likely outcomes for Yeezy merchandise: destroy it, rebrand it, export it

Sales and production of Yeezy branded products have stopped as well as payments to Ye and his companies.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT RENT THE RUNWAY

New York, New York-based Rent the Runway, an operator of a fashion e-commerce platform that allows users to rent, subscribe, or buy designer apparel and accessories, has announced a restructuring initiative to contain costs.

The effort will impact 24% of the company's corporate workforce, an estimated 240 employees.

According to Chief Executive Jenn Hyman, “We’re significantly pulling forward the path to profitability. We can get to profitability at much lower revenue numbers. The restructuring won’t cut marketing, inventory, or customer-facing positions. We’re not relying on growth in the same way to get us to profitability.”

“It is becoming clear to us that our customers live, work, socialize and travel differently in 2022 than they did prior to the pandemic. We are still learning how these types of changes in customer behavior impact the business, particularly in challenging natural environments. If remote and hybrid work trends increase, our subscription business might become more socially and casually oriented, and we might experience more seasonal peaks and troughs.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?