Rent the Runway Hitting Pause On Business

After suffering major technical difficulties, Rent the Runway is briefly halting acceptance of new subscribers and issuing a delay notice for customers who’ve already subscribed. According to a notice from the company, no new subscribers or new event rentals will be accepted until at least until Oct. 15. Shoppers will continue to receive their subscription orders, but there may be delays.

Rent the Runway is a clothing platform that lets users exchange new and designer clothing and accessories to constantly update their wardrobe. The business offers two tiers of monthly plans. Its “Unlimited” plan allows users to rent four garments at any given time with the option to swap them for $159 per month. Its “Update” plan, for $89 per month, allows customers to rent a single set of four items monthly. Users can also rent West Elm home goods and children’s clothing.

In recent weeks, the fashion rental company has received a number of customer complaints related to delayed deliveries. According to reports, the issues arose when the company installed new software in its New Jersey warehouse, creating a slew of inventory and supply chain issues that impacted the number of orders that could be shipped each day. The problems have been so profound that Rent the Runway’s head of supply chain, Marv Cunningham, has announced he will be stepping down at the end of the month.

Last week, co-founder and CEO Jenn Hyman sent an email to existing customers saying that Rent the Runway would be making “significant changes to our operation” in the coming weeks and that customers “should feel this improvement within the next three weeks.” The company now says that it will issue full refunds and give an additional $200 in cash to customers who made a one-off order but had it canceled because of the supply chain problems. Any order that has already been placed for delivery on or after Oct. 7 will be shipped.