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Rent the Runway to swap debt for equity in revival effort

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Rent the Runway to swap debt for equity in revival effort


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Bloomberg

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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. 

Rent the Runway is designed to enable its customers to rent designer pieces – Rent the Runway

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.



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Burberry unveils High Summer 2026 lido-inspired campaign

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Burberry unveils High Summer 2026 lido-inspired campaign



Burberry presents the High Summer 2026 campaign: a film and portfolio of images capturing life at the lido, celebrating Britain’s culture of open-air pools that come alive with families, friends and neighbours every summer.

British actors Simone Ashley and Tom Blyth star alongside models Alva Claire, Babacar N’Doye and Sacha Quenby and a cast of synchronised swimmers and divers.

Burberry’s High Summer 2026 campaign captures Britain’s nostalgic lido culture through a sunlit film featuring Simone Ashley and Tom Blyth.
Blending heritage check with pastel tones, the collection spans swimwear, relaxed tailoring, raffia bags and lightweight layers, evoking effortless, poolside summer style.
Directed by Francis Plummer, the campaign reflects a warm, communal British summer mood.

The campaign film is directed by Francis Plummer and shot by photographer Ryan McGinley. The cameras move from loungers to diving boards, catching mid-air dives and friends stretched out in the hazy afternoon light. Before long, the best spots by the pool are claimed with a Burberry towel. Summer has begun. The film is underscored by the TONE remix of ‘Beating’ by Tirzah.

‘A lido holds a particular kind of nostalgia for the British. The moment the sun comes out, we make the most of the weather. We wanted to bring to life a warm summer’s day spent in and around the water’s edge with friends.’ said Daniel Lee Chief Creative Officer, Burberry.

Key styles

The High Summer 2026 collection features the Burberry Check in heritage-inspired sand beige and pastel shades of aubergine purple and cornflower blue.

The iconic Burberry Check bikini is the beach essential, alongside matching swimsuits and men’s swim shorts trimmed with check.

Poolside separates include tops, skirts and shirts cut from cotton voile, plus cover-up dresses woven with a tonal Burberry Check and deckchair-inspired stripes. Ruffled trims and ties at the neckline capture the floaty, effortless feel of the collection. Festival

tank tops in ribbed cotton jersey are trimmed with check straps, while looks are wrapped in lightweight wool silk scarves.

For men, collared shirts and shorts are tailored to relaxed lines and finished with fresh interpretations of the Burberry Check, from textural weaves to intricate embroidered designs. The co-ord set is crafted from lightweight cotton poplin printed with a playful seahorse pattern in honeysuckle pink.

The classic cotton piqué polo shirt comes in a spectrum of vivid and neutral colours. Burberry Check is subtly placed at the placket and trims the collar of T-shirts in soft cotton jersey.

Lightweight hooded jackets are ideal for cooler evenings and unexpected showers, the new-season designs woven in aubergine purple and cornflower blue check.

In shoes, the new Knight Runner sneakers offer a streamlined, low-profile shape for summer. Sandals are elevated in the form of the whipstitched leather Baez and check-trimmed suede Urchin styles, while Burberry Check slides and Pavilion sandals are made for the beach.

Lightweight Margate bags are handcrafted in Madagascar from locally sourced raffia palm leaves, dyed in signature sand beige Burberry Check. Accessories include crocheted bucket hats and wraparound sunglasses, designed to shield from the sun.

Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.

Fibre2Fashion News Desk (JP)



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Drewry WCI snaps 6-week rally due to ease in freight charge

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Drewry WCI snaps 6-week rally due to ease in freight charge



The Drewry World Container Index (WCI) snapped a six-week rally and eased 2.72 per cent. The index dropped to $2,246 per FEU (Forty-foot Equivalent Unit) for the week ending April 16. The index stood at $2,309 per FEU in the week ending April 9. The six-week rally was initially triggered by higher bunker fuel prices following the late-February conflict in the Middle East. After trending down throughout January and early February, the index spiked due to geopolitical and oil supply disruptions. However, the rally halted amid declining rates on Asia–Europe and Transpacific lanes.

According to the Drewry WCI index, the spot rates from Shanghai to New York and Los Angeles decreased by 3 per cent to $3,552 and $2,810, respectively, per 40-foot container. As per Drewry’s Container Capacity Insight, 9 blank sailings have been announced on the Transpacific trade route for next week to maintain capacity. A few carriers have announced a Peak Season Surcharge (PSS) of around $2,000 per 40ft container, effective May 1. Drewry expects freight rates to remain relatively stable in the coming weeks before the implementation of the announced PSS.

Drewry WCI snapped a six-week rally, falling 2.72 per cent to $2,246 per FEU amid easing freight rates.
Declines on Asia–Europe and Transpacific routes drove the drop, though carriers plan PSS hikes from May.
Despite Middle East tensions, rates are expected to remain relatively stable, with capacity shifts and blank sailings influencing movements.

Spot rates on the Shanghai–Rotterdam trade route decreased 3 per cent to $2,229 per 40ft container, while rates on Shanghai–Genoa fell 2 per cent to $3,343 per 40ft container. Carriers are increasing effective capacity on this trade route, with only one blank sailing announced so far. Meanwhile, ZIM has announced a new bunker factor (NBF) of $850 per container, effective May 1, but for now Drewry expects freight rates to remain stable in the coming week.

Rates from New York to Rotterdam decreased 4 per cent to $1,022 per FEU, while Rotterdam to New York increased 3 per cent to $2,030 per FEU. Rotterdam-Shanghai rose 1 per cent to $599 per FEU, and Los Angeles–Shanghai steadied at $762 per 40-foot container.

The US-led naval blockade around the Strait of Hormuz has halted or restricted ships linked to Iran, with multiple vessels turned back. The disruption has strongly impacted global oil supply chains and pushed oil prices even higher. If ongoing negotiations fail, shippers should prepare for reduced schedule reliability, potential port omissions, longer lead times and upwards pressure on freight rates.

Fibre2Fashion News Desk (KUL)



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Bangladesh ensuring import of refined fuel from alternative sources

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Bangladesh ensuring import of refined fuel from alternative sources



Bangladesh’s Energy Division recently said the capacity of the state-owned Eastern Refinery Limited (ERL) would affect little the fuel supply system as the unit contributes only a fifth of the country’s petroleum supply system while the rest is imported in refined form.

The country has ensured import of refined fuel from alternative sources despite the global situation, and there will be no adverse impact on oil supply due to ERL’s low feed operations, Energy Division joint secretary Monir Hossain Chowdhury was cited as saying by domestic media outlets.

Bangladesh’s Energy Division recently said the capacity of Eastern Refinery Limited (ERL) would affect little the fuel supply system as the unit contributes only a fifth of the country’s petroleum supply system while the rest is imported in refined form.
It has ensured import of refined fuel from alternative sources, and there will be no adverse impact on oil supply due to ERL’s low feed operations.

The facility is now operating two of its four units to refine oils with ‘dead stocks’ and is expected to make two other units operational again, he said. The process to import crude is under way.

Chowdhury said production slowdowns at two ERL units due to crude oil shortages would not disrupt the nation’s fuel supply as over 255,000 metric tonnes of refined fuel is in stock now.

The Strait of Hormuz has been almost closed since February 28 preventing scheduled arrival of 2,00,000 metric tonnes of crude oil to Bangladesh during that period, he noted.

A ship carrying 100,000 tonnes of crude was supposed to arrive from Saudi Arabia in March, but is currently stuck at Rastanura Port as it could not cross the Hormuz Strait, he informed reporters at a press conference. Another ship from the United Arab Emirates (UAE) also met the same fate.

A third ship carrying 100,000 tonnes of Arabian light crude is scheduled to depart from the UAE on April 20 and expected to reach Chattogram via an alternative route on May 2 or 3, he said.

The government has also requested Saudi Arabia to provide another 100,000 tonnes of crude oil in May, he added.

A work order has been issued with the approval of the cabinet to import 100,000 tonnes of crude oil through direct purchase to meet urgent needs.

Fibre2Fashion News Desk (DS)



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