The premium resale site announced in a filing with the SEC on Thursday that it would close four stores and fire 230 staff as part of its cost-cutting efforts.
7 percent of its workers will be laid off. The RealReal will shutdown its flagship locations in San Francisco and Chicago as well as two more locations in Atlanta and Austin. Also, the business will downsize its New York City and San Francisco office space and close two consignment offices.
In order to improve efficiency and take into account market trends and macroeconomic considerations, The RealReal “will continue to examine its real estate footprint as it deems suitable,” according to the filing.
In recent months, a number of businesses and brands have taken action to cut staff. Neiman Marcus Group made plans to lay off around 5% of its workers earlier this week. A total of 138 people, or around 7% of Ssense’s staff, were let go in January.