The RealReal Lays Off, Furloughs Staff in COVID-19 Wake

The secondhand market is not resilient to the coronavirus pandemic.

Fashion
3.5K 5 Comments

Though the secondhand market is likely one of the fashion industry’s best bets in the wake of the ongoing COVID-19 pandemic, it’s not by any means immune, as TechCrunch relayed. Luxury resale site The RealReal has announced substantial staff layoffs and furloughing in response to the devastating global epidemic.

10% of The RealReal’s workforce has been laid off, while 15% of remaining staff is now furloughed in a bid to offset estimated losses of over $70 million USD. Various concerns had already surfaced regarding conditions at the company’s used goods warehouses, but the San Francisco-based retailer responded online, seeking to quell fears.

According to a statement, The RealReal implemented the layoffs and furloughs as part of a greater effort to “support its employees through the pandemic and ensure the team is well positioned for a strong restart on the other side of this health crisis.” A hiring freeze and executive salary cut are also in effect. This news comes mere months after The RealReal fought off criticisms of ineffective authentication practices, offering little salvation for the publicly-traded company.

“Given the unknown duration of the pandemic, we’ve focused on reducing operating expenses and preserving liquidity to weather the near-term challenges and ensure we are well positioned to capitalize on the significant opportunity in front of us,” Julie Wainwright, The RealReal CEO, offered in the statement. “I am confident the strength of our balance sheet, customer satisfaction, … and buyer and consignor repeat rates … will position us to bounce back quickly once the economy stabilizes.”

Times are tough not only for secondhand retailers, but for a variety of digital-friendly boutiques as well.

Read Full Article

What to Read Next

J. Cole Teases Release Window for 'The Fall Off'
Music

J. Cole Teases Release Window for 'The Fall Off'

Telling fans that he hopes he has “something new to perform” by Dreamville Fest 2025.

Teeing Off in Middle Earth: Welcome to The Hills Golf Club
Golf

Teeing Off in Middle Earth: Welcome to The Hills Golf Club

Discover one of New Zealand’s most renowned private clubs and how an upcoming renovation will improve it even further.

The Alchemist Drops Off 'The Genuine Articulate'
Music

The Alchemist Drops Off 'The Genuine Articulate'

With assistance from Larry June, Action Bronson and others.


A New 'The Mummy' Film Is in the Works
Entertainment

A New 'The Mummy' Film Is in the Works

From ‘Evil Dead Rise’ director Lee Cronin.

Apple Introduces New Second Generation iPhone SE
Tech & Gadgets

Apple Introduces New Second Generation iPhone SE

With an updated design similar to the iPhone 8.

Designer Pens Hydrogen, Electric & Rotary-Powered Mazda RX-10 Vision Long Tail Concept
Automotive

Designer Pens Hydrogen, Electric & Rotary-Powered Mazda RX-10 Vision Long Tail Concept

Maximilian Schneider imagines Mazda’s future with a 1,030 HP halo car.

Fangirling with Thundercat
Music 

Fangirling with Thundercat

The artist on anime, Muay Thai, and what inspires his singular style for ‘HYPEBEAST Magazine.’

50 Cent and Post Malone Drop Surprise "Tryna F*ck Me Over" Music Video
Music

50 Cent and Post Malone Drop Surprise "Tryna F*ck Me Over" Music Video

From 50 Cent’s 2015 project ‘The Kanan Tape.’

P·P·O·W Gallery Spotlights Artworks Made Amidst Ongoing Coronavirus Pandemic
Art

P·P·O·W Gallery Spotlights Artworks Made Amidst Ongoing Coronavirus Pandemic

As part of an online viewing room called “Days Soon to Fade.”


Nike React Infinity Run Offered in Three New Colorways
Footwear

Nike React Infinity Run Offered in Three New Colorways

“Solid White/Photo Blue,” “Particle Grey/Volt” and “Black/Metallic Silver.”

How to Upgrade Your Home-Cooking Game
Food & Beverage 

How to Upgrade Your Home-Cooking Game

Chefs from London’s BAO and Sketch share their top tips.

KEF Launches New "EGG Duo" Digital Speaker System
Tech & Gadgets

KEF Launches New "EGG Duo" Digital Speaker System

Offered in five colorways.

Eric Haze Stuck at Elaine de Kooning House Due to COVID-19 Lockdown Measures
Art

Eric Haze Stuck at Elaine de Kooning House Due to COVID-19 Lockdown Measures

Since arriving on March 13 to begin his residency.

Premiata's SS20 'Steven' Range Celebrates Timeless Design
Footwear 

Premiata's SS20 'Steven' Range Celebrates Timeless Design

Presented by Premiata
A ’90s style made refreshingly modern.

More ▾