The RealReal announces store closures and layoffs

• The company — which has never reported a quarterly profit since going public in June 2019 — had 3,500 employees, 16 stores, 19 consignment offices and four authentication centers as of Sept. 30.
• The closing stores are in San Francisco, Chicago, Atlanta and Austin.

State of play: The RealReal pursued a "growth at all costs" strategy for too long, President Rati Sahi Levesque told investors in November.

• The company acknowledged it spent too much money trying to sell home, art and kids items, many of which are too expensive to ship.
• Competition for consignment goods has also been stiff from the likes of Poshmark and ThredUp.
• "Throw in the higher costs of doing business into the mix and there is a significant threat to The RealReal’s quest to move into the black," GlobalData managing director Neil Saunders wrote.

What we're watching: Whether The RealReal is targeted for an acquisition.

• The proliferation in consignment brands, both public and private, makes the market ripe for consolidation, Axios Pro: Retail Deals reporter Kimberly Chin reported in December.