In a regulatory filing, the RealReal, the luxury consignment website, said it plans to lay off seven percent of its workers and close two flagship stores, two neighborhood stores and two consignment offices as part of a cost-savings plan.
The planned layoffs will affect about 230 employees.
The closures include two flagship stores in San Francisco and Chicago, two neighborhood stores in Atlanta and Austin, and two luxury consignment offices in Miami and Washington, D.C.
RealReal is also reducing office spaces in San Francisco and New York City.
RealReal said in the filing, “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 estimates it will incur non-recurring charges of approximately $1.7 to $2.2 million in connection with the layoffs. The company expects that the majority of the charges will occur in the first quarter of fiscal 2023 and that the implementation of the headcount reductions, including cash payments, will be complete by the end of the
first quarter of fiscal 2023.
The company also expects to incur charges related to its decision to exit and sublease or cease the use of certain facilities under the company’s real estate reduction plan, although it’s uncertain of the related costs at this time.
