The RealReal is laying off 7% of its workforce and closing its flagship store in San Francisco’s Union Square, the company announced in a regulatory filing.

The luxury resale firm opened its two-story flagship store in 253 Post St. in March 2020 just before pandemic shutdowns. The store, which opened in the former space of luxury brand Hermès, sold high-end luxury items and allowed customers to bring in their own products for sale and authentication. It also included an in-store cafe. 

The announced layoffs will total around 230 employees, and the company said it will incur charges of up to $2.2 million in the first quarter of fiscal 2023 from severance payments, benefits contributions and other costs.

The company, which was founded in 2011 by former Pets.com CEO Julie Wainwright, operates an online and brick-and-mortar marketplace for authenticated luxury items, including apparel, jewelry and home goods. The company went public in 2019 in a $300 million IPO. Since then, however, its stock price has fallen by nearly 95%. 

The company has also faced a number of lawsuits over accusations that it failed to accurately authenticate items that it received, including from luxury brands like Chanel. 

In the company’s last earnings report, The RealReal reported a net loss of $47.3 million against $143 million in total revenue. Wainwright stepped down from her role as CEO in June of 2022 and was replaced by John E. Koryl in January.

As part of the cost-cutting measures, the company will also shutter another flagship store in Chicago, two of its neighborhood stores in Atlanta and Austin and two of its luxury resale centers in Miami and Washington, D.C. 

The RealReal also plans to reduce its office footprint in New York and San Francisco, where it rents space at 55 Francisco St.