Rent the Runway is mulling plans to go public via an IPO as early as this year, report says

Rent the Runway CEO Jennifer Hyman.

JP Yim/Getty Images for Girlboss Rally NYC 2018

• Rent the Runway could go public via an IPO as early as this year, Bloomberg reported.
• The outlet cited sources that claimed the clothes-rental business was already interviewing banks.
• But they said that discussions were at an early stage and the company may decide against an IPO.
• See more stories on Insider's business page.

Rent the Runway, the designer clothes rental business, could go public via an initial public offering (IPO) as early as this year, Bloomberg reported Thursday.

People familiar with the matter told the publication that Rent the Runway was already interviewing banks in preparation for an IPO, though they noted that discussions were at an early stage and the company may still decide against an IPO.

The company did not immediately respond to Insider's request for comment.

Read more: Rothy's CEO reveals how the sustainable-shoe startup plans to double sales by entering the men's market after adding a half-million new customers in 2020

Rent the Runway, which last month said it was adding actor and entrepreneur Gwyneth Paltrow to its board, started in 2009 as a way to rent one-off items for special events. It's grown into a platform for people to rent everyday clothes instead of buying new ones, and has added kids' clothing and homeware rentals.

The startup also entered the booming resale market this week.

News of the potential IPO comes after a tumultuous year for the company. The pandemic ravaged its business and demand for renting one-off pieces or officewear dried up overnight, wiping $250 million from the company's valuation and forcing it to close its stores and lay off or furlough half of its staff.

Read the original article on Business Insider

from Business Insider https://ift.tt/3uLsakB