Rent the Runway, Inc. announces a growth recapitalization to enhance its balance sheet and financial flexibility.
The recapitalization involves a reduction in balance sheet debt, lower interest expenses, and extended maturity on remaining debt.
Partnerships with STORY3 and Nexus Capital Management will support the execution of Rent the Runway's value creation plan.
Significant Business Strengthening
Rent the Runway has achieved near free cash flow breakeven, transformed inventory acquisition, and focused on customer growth.
Partnership Enhancements
APS, STORY3, and Nexus will convert debt into equity, contributing new capital to support sustainable growth initiatives.
Market Positioning
Rent the Runway aims to capitalize on the expanding U.S. rental market and drive long-term value as a category-defining leader.
Board Leadership
Peter Comisar and Damian Giangiacomo will join Rent the Runway's Board of Directors post-transaction, enhancing strategic guidance.
Customer Growth Success
Rent the Runway ended Q1 2025 with record high active subscribers and improved customer retention rates, signaling positive momentum.
- The growth recapitalization is expected to strengthen Rent the Runway's financial position and enable sustainable growth strategies.
- Partnerships with APS, STORY3, and Nexus Capital Management bring deep sector expertise and financial backing to drive long-term value creation.
- Enhanced board leadership and a focus on customer growth and product innovation position Rent the Runway for continued success in the fashion rental market.
Rent the Runway's growth recapitalization marks a significant step towards financial stability and strategic expansion, setting the stage for continued market leadership and customer-centric growth initiatives.