Rent the Runway says it won't accept new members as it fixes a supply chain crisis that has spurred customer backlash online
- Rent the Runway said Friday that it will not be accepting new members into its clothing rental program until October 15. Customers will also be unable to order one-time rentals until then.
- The news comes as the company faces a wave of customer complaints over delayed orders.
- CEO Jennifer Hyman blamed these delays on a "significant" operational shift at the company, which involved changes in its supply chain.
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Rent the Runway has put the brakes on its membership program for the time being until its resolves supply chain issues.
New York's buzziest clothing rental startup announced early Friday morning that it will not accept any new subscribers or one-off rental orders before October 15.
The news comes as the company faces a wave of customer complaints about delayed deliveries.
CEO Jennifer Hyman blamed these delays on a "significant" operational shift at the company, which involved changes in its supply chain. She said in an email sent out to customers that these changes would "greatly improve" the customer experience and increase the selection of items available in the Unlimited closet.
The company also said on Friday that it will issue 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. In a conversation with Bloomberg, Hyman said she didn't feel it was right to only offer credit to spend at Rent the Runway.
Hyman told Bloomberg that the troubles began on September 13 when the company installed a new system in its New Jersey warehouse. This created problems with the fulfillment process and impacted the number of orders that could be shipped each day.