The rooms at Rent the Runway & # 39; s flagship store in New York City.
Source: Rent the Runway
Rent the Runway will not accept new subscribers or event rentals at least before October 15th. The clothing platform runs into a number of inventory and supply chain issues and struggles to keep up with customer requirements.
Co-founder and CEO Jenn Hyman emailed current subscribers Friday morning saying, in part: [1[ads1]9659005] "I am able to update you further on delays that some of you have experienced receiving your orders lately The delays, which began on September 13, are due to unforeseen problems associated with a significant software transformation that we are performing in our fulfillment operation, and our technical team is working to resolve these issues as soon as possible, and we expect this upgrade to be completed by 15 October or before, and then you will experience much improved availability of styles. "…
" So that we can focus entirely on you, our current customers, while solving these issues, we will not accept new subscribers or new order for rental of events to be delivered before October 15. "
Hyman said that current subscribers could still expect delays of another one to two days, until October 15, and advised people to book "a few days ahead of your normal plan."
A company representative did not immediately respond to CNBC's request for further comment.
Last week, Hyman had sent an email to existing customers as complaints began to roll in about sold-out sizes and late-order shipments. She said Rent the Runway would make "significant changes to our operations" over the next few weeks, promising customers "you should feel this improvement over the next three weeks."
The company had also recently begun distributing upwards of $ 200 in cash to customers who never received their orders.
Business of Fashion reported earlier this week that Rent the Runway & # 39; s supply chain, Marv Cunningham, will retire at the end of the month amid the turmoil.
Earlier this year, Rent Runway received a new round of funding that increased the valuation of the retail market to $ 1 billion. The company has now raised more than $ 330 million.
The business, which offers monthly plans that cost $ 89 and $ 159 – depending on the frequency of the exchange of 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.
Rent the Runway had grown its physical footprint and opened several free-standing places, where women could exchange goods and choose new ones, instead of having to wait for return to be accepted by mail. We have also partnered with WeWork and Nordstrom to lay waste boxes at some office and retail locations.
– CNBC's Megan Graham and Angelica LaVito contributed to this report.