Fashion
Rent the Runway to swap debt for equity in revival effort

By
Bloomberg
Published
August 21, 2025
Rent the Runway Inc. will hand over a controlling stake in the company as part of a plan to cut debt and grow, after residual effects of the Covid-19 pandemic pushed the firm to the brink of bankruptcy.
The deal, with lender Aranda Principal Strategies and other partners, will wipe more than $240 million of debt from Rent the Runway’s balance sheet, according to an emailed statement. The company, which allows subscribers to rent clothing for the office and events, will have several more years to repay $120 million in remaining borrowings.
Private equity firms Story3 Capital Partners and Nexus Capital Management, along with Aranda, will also inject $20 million into the company as part of the transaction. Aranda was spun off from Singapore’s Temasek Holdings Pte. as a private credit platform earlier this year.
The three investors will receive a majority ownership stake in the company, representatives for Rent the Runway said in an interview — about 86% before accounting for a management incentive plan and a rights offering set to give existing stockholders the opportunity to purchase as much as $12 million of shares.
The offering will be at $4.08 a share, according to the statement. The stock closed Wednesday at $4.485, up from a record low of $3.77 in April. Shares have dropped by two-thirds over the past year. “I’m viewing this as an IPO 2.0 for the company,” Chief Executive Officer Jennifer Hyman said in an interview.
Rent the Runway’s operations and trajectory over the past 18 months encouraged lenders to agree to the plan, which allows management and current owners to retain stakes in the firm, according to Hyman.
“Every single financial metric has substantially improved over last several years, and we were able to do that with shackles on,” Hyman said, referring to the company’s debt load. She acknowledged alternatives included potentially filing for bankruptcy.
Its debt burden grew larger as it started paying interest in kind, which allows borrowers to defer paying interest in cash but tack it on as additional debt due at maturity. The decision was made in light of financial pressures stemming from the pandemic, when people stopped wearing chic work-wear in office and turned to pyjamas at home.
Hyman co-founded Rent the Runway with her business partner Jenny Fleiss in 2009, introducing people to the option of renting clothing for events. The company then started offering a subscription: members can borrow merchandise for a monthly fee.
The firm was valued at $1 billion in 2019, a figure that dropped to $750 million after the pandemic hit in March 2020. Rent the Runway went public in 2021, betting in-person events such as weddings would return, and had more than 147,000 subscribers as of the end of the first quarter.
The company has struggled to revive its business since its public listing amid a subscriber slump. Management executed a reverse stock split in 2024 remain on the Nasdaq. Revenue fell 7.2% in its most recent quarter.
Hyman has been working to revamp Rent the Runway’s operating model. The service has begun sharing revenue with brand partners — made possible in part by its shift to an “asset-light” model.
While Rent the Runway previously owned the inventory on its platform, it more recently shifted to a model that allow brands to put their items on the platform for free and receive a portion of the revenue generated when the goods are rented out. Hyman plans to hone in on that strategy after the recapitalisation and find more companies to work with.
“My primary action post this deal clothing is doing even more deals with brand partners around the world,” said Hyman. “It allows us to invest in even more inventory.”
More merchandise is critical to the company’s revival effort, and management hopes that a larger assortment of items will lure more subscribers. Rent the Runway has added 1,000 new styles and expects to accelerate that process.
Fashion
Bangladesh’s RMG exports up 4.7% in Q1 FY26, but Sept shipments dip

Woven garment exports slightly outpaced knitted garment exports in terms of growth. Knitwear exports (Chapter **) rose by *.** per cent to $*.*** billion, compared to $*.*** billion in the same period of fiscal ****–**. Woven apparel exports (Chapter **) increased by *.** per cent to $*.*** billion, up from $*.*** billion in July–September ****, EPB data showed.
Home textile exports (Chapter **, excluding ******) also grew, rising by *.** per cent to $***.** million, compared to $***.** million in the same period of the previous fiscal. Collectively, exports of woven and knitted apparel, clothing accessories, and home textiles accounted for **.** per cent of Bangladesh’s total exports, which stood at $**.*** billion during the period. Higher demand for diversified and value-added textile products supported this growth.
Fashion
Dutch manufacturing flat in August, up 1.7% from July: CBS

Slightly more than half of the various industrial sectors produced less than they did one year previously. Of the eight largest industrial sectors, output rose the most sharply in the repair and installation of machinery, while it fell the most sharply in the transport equipment industry.
A more accurate picture of changes in short-term output is obtained when the figures are adjusted for seasonal effects and the working-day pattern. After adjustment, manufacturing output rose by 1.7 per cent in August relative to July, CBS said in a press release.
In August 2025, Dutch manufacturing output remained unchanged year-on-year, although output declined in over half of the industrial sectors.
After seasonal adjustment, output rose by 1.7 per cent compared to July.
The strongest growth was seen in the repair and installation of machinery, while transport equipment recorded the sharpest decline.
After adjusting for seasonal and working-day effects, manufacturing output often fluctuates significantly. In the spring of 2020, output declined rapidly, reaching a low point in May 2020. This was followed by an upward trend until May 2022. The trend has reversed since then.
Producer confidence was less negative in September than it was in August. Manufacturers were more positive regarding output for the next three months, in particular.
Germany is an important market for the Dutch manufacturing sector. In September, German manufacturers were more negative than they were in August, as reported by Eurostat. In August, the calendar-adjusted output of the German manufacturing sector was down by 5.1 per cent, year on year. Relative to July, output fell by 5.5 per cent, as reported by Destatis.
Fibre2Fashion News Desk (RR)
Fashion
ADB commits $82.5 mn to drive Cambodia’s energy transition

The first subprogramme, approved in 2022, introduced pivotal policy measures that guided the energy sector toward a more efficient and renewable development pathway. Building on this foundation, subprogramme 2 advances regulatory reforms to strengthen the energy efficiency framework and enhance policy clarity to attract private sector investment. A key milestone under the subprogramme is the introduction of the country’s first set of regulations establishing Minimum Energy Performance Standards for electrical appliances, starting with air conditioners, which account for the largest share of energy consumption in the residential sector, ADB said on its website.
Subprogramme 2 will also establish an Energy Efficiency Revolving Fund aimed at facilitating access to finance for local small and medium-sized enterprises (SMEs) to invest in energy-efficient technologies. The revolving fund will be set up through a financial intermediation structure to enable local banks to extend loans to SMEs for energy efficiency investments. By mobilizing domestic financial institutions and supporting SMEs, the revolving fund is expected to accelerate the nationwide scale-up of energy efficiency investments.
Asian Development Bank (ADB) has approved $82.5 million for Phase 2 of Cambodia’s Energy Transition Sector Development Programme to support clean energy through policy reforms and investments.
The programme introduces energy efficiency standards, establishes a revolving fund for SME financing, and also aims to attract private investment.
“ADB is honoured to support Cambodia in its ambitious and transformative journey in the energy sector. Through a comprehensive reform package, combining policy support with strategic investments, the Energy Transition Sector Development Programme will support turning the government’s ambitious vision into reality,” said ADB acting country director for Cambodia Anthony Gill. “This includes the goal of achieving 70 per cent renewable energy in the power mix by 2030, along with a strong commitment to advancing energy efficiency, which is essential to ensure that Cambodia’s growth remains both sustainable and affordable.”
Subprogramme 2 will be followed by a third phase in 2027, which will further deepen reforms by expanding the energy efficiency regulatory framework and introducing technical standards for renewable energy, buildings, and industry to further attract private sector investment.
Fibre2Fashion News Desk (RR)
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