Rent the Runway 'back to business as usual' after supply chain chaos

Key Points
  • Rent the Runway says it completed a slew of system upgrades "ahead of schedule."
  • Citing problems in its supply chain, the women's clothing subscription platform had previously stopped taking on new customers. 
  • At one point, Rent the Runway was handing out upwards of $200 in cash to customers who never received their orders.
The fitting rooms at Rent the Runway's flagship store in New York City.
Source: Rent the Runway

Rent the Runway's business is back up and running "as usual," the company said in a statement on its website on Tuesday, following an uproar of frustrated customers seeing delays or even complete cancellations of their orders.

The women's clothing subscription platform briefly halted taking on new customers and had targeted Oct. 15 to resume, citing kinks in its supply chain.

Here's what Rent the Runway CEO Jennifer Hyman said on Tuesday:

We are happy to share the news that we completed our system upgrades ahead of schedule, and are back to business as usual! Today, we're officially welcoming new orders and new subscribers.

We built this business for our community, and we are so thankful for the support over these past few weeks. As we continue transforming the traditional model of clothing consumption, we may not always be perfect, but please know that we will never stop investing in making your renting experience the best it can be. We are breaking new ground together — thanks for being on the journey with us.

At one point, Rent the Runway was handing out upwards of $200 in cash to customers who never received their orders.

Business of Fashion also reported in September that Rent the Runway's head of supply chain, Marv Cunningham, was stepping down.

Rent the Runway earlier this year received a new round of financing that boosted its private-market valuation to $1 billion. The company has now raised more than $330 million.

The business, which offers monthly plans costing $89 and $159 — depending on the frequency of exchanging clothing and accessories — appeals to women who want to avoid wearing the same thing twice, or who want the flexibility to try new and designer brands, ranging from Victoria Beckham to 7 For All Mankind.

Rent the Runway has been opening more standalone locations, where women can swap out items and pick new ones, instead of having to wait on returns to be accepted via mail. It has also partnered with WeWork and Nordstrom to put drop-off boxes in some office and retail locations.

These retailers are trading at their cheapest level in a decade