The coronavirus pandemic has hit companies, particularly retailers, exhausting. To this point, the virus has not solely claimed lots of of hundreds of lives but in addition destroyed hundreds of companies. Dozens of shops have already gone bankrupt because of the pandemic. One of many retailers nonetheless staying afloat is New York Metropolis’s Hire the Runway, a trend startup and on-line e-commerce web site that lets girls lease designer garments and equipment.
Right this moment Hire The Runway introduced that every one bodily shops will likely be completely closed because the unicorn startup rethinks retailing in the course of the pandemic. Affected shops embody the 5 bodily retail areas in New York, Chicago, Los Angeles, San Francisco, and Washington, DC. The corporate mentioned the choice was a part of an effort to focus its investments on digital media and add extra Dropboxes for purchasers.
Based in 2009 by Jennifer Hyman and Jennifer Fleiss, Hire the Runway is an internet e-commerce web site that permits girls to lease designer clothes and niknaks. It is altering the best way trendy girls gown – and, in flip, disrupting the $ 1.7 trillion trend business – with the idea of renting by means of garments.
The startup pioneered the “Closet within the Cloud” and believes girls in all places will quickly be subscribed to trend, making renting essential utility whereas additionally giving them the chance to really feel like their greatest selves day by day. The corporate shares lots of of hundreds of clothes and equipment from 550+ designer companions with choices for work, weekends and particular events.
Simply over a yr in the past, Hire the Runway raised $ 125 million valued at $ 1 billion, making it a member of the coveted unicorn startup membership. The spherical was led by present traders Franklin Templeton Investments and Bain Capital Ventures.
Hire the Runway plans to additional develop its community of drop field areas. To date, the corporate has partnered with WeWork, Nordstrom and West Elm.
“This has been an evolution over the previous two to 3 years,” mentioned Anushka Salinas, President and Chief Working Officer of Hire the Runway, in an interview. “Now we have at all times identified that we would like and may have a method for bodily presence. What we now know is that the bodily presence technique is all about Dropboxing. “
In April, Hire the Runway took 35% of its workers off because the coronavirus ravaged retail shops.