New York City-based Rent the Runway has confidentially filed paperwork for an initial public offering (IPO).
On Monday, the online clothing rental firm revealed that the number of shares on the offer and the target price range for its IPO have yet to be determined.
The company’s move to go public follows a series of efforts it has made to reinvigorate its business after it suffered massive losses during the pandemic. In its latest move, the company decided to enter the $33 billion fashion resale market, which is continuing to gain steam as consumers are choosing to buy and rent pre-owned designer clothes and accessories.
“We think that we’ll be able to convert more people to shopping secondhand,” Chief Executive Officer Jenn Hyman said back in June 2021. “And from there, once they have the experience of buying something from us and seeing the quality, many of those people will end up converting into rental.”
In August of last year, the company closed all of its physical stores and pivoted online as it looked to ready its business for consumers’ evolving shopping preferences. A month later, Rent the Runway forwent its popular unlimited rentals options and introduced a new three-tiered pricing model. In May 2021, the platform also appointed Gwyneth Paltrow to its board of directors.
“Gwyneth’s keen understanding of consumer psychology and unparalleled ability to tap into and define the cultural zeitgeist will play a key role in propelling Rent the Runway forward in a post-pandemic world,” Hyman said.
The company’s efforts seem to be paying off. It has seen a 93 percent increase in its active subscriber base. Moreover, by the end of 2021, Rent the Runway expects to outpace its 2019 customer base size.