The US clothing rental service Rent The Runway has presented a recapitalization plan that is intended to strengthen the company’s financial position and enable future growth.
In the second business quarter, which ended on July 31, 2025, the company generated sales of $ 80.9 million (69.07 million euros)-an increase of 2.5 percent compared to the previous year.
The new plan, which is to be completed by December 31, provides for a significant reduction in debt from $ 340 million to $ 120 million. In addition, the term of the remaining liabilities will be extended by 2029. Rent The Runway thus gains additional financial flexibility.
Despite a quarterly loss of $ 26.4 million, the company is optimistic: the number of active subscribers: Interior rose by 13.4 percent to a total of 146,373 compared to the previous year. According to the managing director and co -founder Jennifer Hyman, customer satisfaction has reached the highest level in three years, while interaction with the new inventory exceeded all relevant key figures.
As part of his strategic initiatives, Rent the Runway increasingly rely on an extended inventory strategy. The number of new articles in the range doubled almost compared to the previous year, which led to an increase in articles at home by 57 percent. In addition, the subscription experience was optimized by a personalized start screen and a premium program. The newly oriented social media strategy also had an effect: the total commitment increased by around 800 percent, and views of 175 percent.
For the third quarter, the company expects sales between $ 82 million and $ 84 million. The forecast for a double -digit growth of the active subscribers: inside the year was confirmed. However, Rent The Runway expects a lower Free Cashflow, mainly due to costs in connection with recapitalization.
Gross profit and adjusted EBITDA were among the previous year’s values, but management is confident that the measures initiated will position the company for further growth.
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