The other day in trampoline class—yes, it’s great cardio, happy to tell you about it—my workout buddy, who runs a hedge fund, brought up The RealReal in between dynamic kicks. She noted that there was an increasing interest in the fashion resale site’s debt. While her firm wasn’t gobbling it up, she knew many that were interested in accumulating positions.
The vultures are out for a reason. The company currently has a market cap of around $120 million and its stock is down more than 90 percent from its (totally unnatural but nevertheless real) pandemic high. It’s been downgraded by virtually every analyst covering the stock. Operating at a loss, by the end of 2022 The RealReal had $450 million in convertible debt, with an accumulated deficit of $950 million.
