This audio is auto-generated. Please let us know if you have feedback. Dive Brief: Reversing a previous effort to bulk up staffing, The RealReal on Wednesday said it will cut operating expenses through layoffs and store closures. The moves will cost some $1.7 million to $2.
Link: The RealReal slashes workforce, store base in quest for profits | Retail Dive
I am beginning to wonder if The RealReal is becoming an acquisition target as the news that is being released is getting harder to process. Layoffs and store closures should have been done pre 2023 which makes me also wonder how much savings is required in order for breakeven to occur.
Who would acquire them?
this situation looks more and more primed for a PE firm to take them private
This is a situation in need of a thesis.
Perhaps someone with a store base could make this work? Neimans? Nordstroms? I doubt Nordstroms is in an acquisitive mood.
I find it hard to imagine it will be acquired and kept similar, they need some path to making any money
Cutting costs by pennies and nickels is rarely, if ever, the way to get to root cost drivers and realign for growth. This seems like window-dressing.
Welcome here @Ronald_C_Pruett_Jr thanks for your comments