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Rent the Runway Lays Off Retail Workers Amidst Coronavirus Crisis

Brands and retailers across the fashion and footwear industry are feeling financial pressures amidst the virus outbreak.

By Ella Chochrek

Coronavirus: Rent the Runway Layoffs of Retail Workers Due to COVID-19

Ella Chochrek

Assistant Digital Editor

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March 29, 2020 11:24 am

Vara Pikor poses for a picture in front of a "Rent The Runway" store before returning some items in New York. Pikor is wearing some of the items she rents from the company, including her dress and earrings. Now a booming $1 billion business, the clothing rental sector is expected to reach $2.5 billion by 2023, says research firm GlobalData. But for traditional retailers, the economics of renting affordable clothing pose significant challengesClothing-Rentals, New York, USA - 25 Nov 2019 — A Rent the Runway store in New York.
Seth Wenig/AP/Shutterstock

As it battles the pressures of the coronavirus, Rent the Runway is laying off some retail workers.

The apparel rental company, which was valued at $1 billion as of March 2019, confirmed to FN today that it has eliminated some positions as it grapples with the unprecedented crisis. It did not specify the number of roles that were slashed.

“Like many businesses affected by the COVID-19 pandemic, Rent the Runway has had to make some difficult decisions in the short term to thrive in the long term which include temporary store closures and retail role eliminations,” a spokesperson told FN. “We are striving to make this transition as seamless as possible for our employees, from compensation to continuation of health insurance coverage. While we don’t have a sense of how long our business will be impacted, we remain committed to serving and supporting our employees and customers during this challenging time.”

Brands and retailers across the fashion and footwear industry are feeling financial pressures as stores are forced to temporarily close and panicked shoppers cut their discretionary spending. Executives from companies including Macy’s, Puma and Dick’s Sporting Goods are forfeiting their salaries as the virus puts a strain on cash. And DSW parent Designer Brands Inc. and department store giant Nordstrom both made the difficult decision last week to furlough workers.

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“While scientific information is still developing, we have no reason to believe that our processes are ineffective against COVID-19,” the note read. “The teams in our fulfillment centers will continue to use a variety of techniques to ensure that each garment is thoroughly cleaned, steamed and pressed, inspected for quality and carefully packaged so that it arrives ready to wear.”

As of Sunday morning EST, there have been more than 684,000 confirmed cases of the coronavirus worldwide. Over 32,000 people have been killed by COVID-19, the disease the coronavirus causes.

Editor’s Note: This story has been updated to include a statement from Rent the Runway.

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