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.
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.
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.