RealReal Inc., a luxury reseller, plans to lay off 7% of their staff, representing 230 employees, and close four stores and two offices. This cost-cutting measure will result in non-recurring charges of between $1.7 and $2.2 million. The company’s shares have dropped 80% in the past year, while the S&P 500 has decreased by 7%.
Luxury reseller RealReal Inc.
REAL,
plans to lay off 7% of its staff, representing about 230 employees, the company disclosed Thursday morning in a filing with the Securities and Exchange Commission. In a bid to cut costs, RealReal will also close two flagship stores in San Francisco and Chicago, two neighborhood stores in Atlanta and Austin, and two luxury consignment offices in Miami and Washington, DC. The company will cut back its office space in San Francisco and New York. It expects to see $1.7 million to $2.2 million in non-recurring charges related to the layoff plans. Shares have plunged more than 80% over the past 12 months as the S&P 500
SPX,
has lost 7%.