Rent the Runway to Swap Debt for Equity in Revival Effort (2)

Rent the Runway Inc. will hand over a controlling stake in the company as part of a plan to cut debt and grow, after residual effects of the Covid-19 pandemic pushed the firm to the brink of bankruptcy.

The deal, with lender Aranda Principal Strategies and other partners, will wipe more than $240 million of debt from Rent the Runway’s balance sheet, according to a statement. The company, which allows subscribers to rent clothing for the office and events, will have several more years to repay $120 million in remaining borrowings.

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