Rent the Runway Reports Exit Costs, Officer Changes

Ticker: RENT · Form: 8-K · Filed: 2024-01-09T00:00:00.000Z

Sentiment: mixed

Topics: restructuring, management-change, corporate-action

TL;DR

**RTR is shaking things up with potential exit costs and officer changes; watch for details.**

AI Summary

Rent the Runway, Inc. filed an 8-K on January 9, 2024, reporting events from January 8, 2024. The filing indicates "Cost Associated with Exit or Disposal Activities" and "Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers." This suggests potential restructuring or changes in leadership and associated costs, which could impact the company's financial health and strategic direction, making it important for investors to monitor for further details on these activities.

Why It Matters

This filing signals potential operational restructuring or leadership changes at Rent the Runway, which could affect future profitability and strategic direction. Investors should watch for details on the scope and cost of these activities.

Risk Assessment

Risk Level: medium — The filing indicates potential exit or disposal activities and officer changes, which can introduce uncertainty and costs, but without specific details, the full impact is unclear.

Analyst Insight

A smart investor would monitor Rent the Runway's subsequent filings and press releases for specific details regarding the nature and financial impact of the reported exit activities and officer changes, as these could significantly influence the company's future performance.

Key Players & Entities

FAQ

What specific items did Rent the Runway, Inc. report in this 8-K filing?

Rent the Runway, Inc. reported 'Cost Associated with Exit or Disposal Activities' and 'Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers' as per the 'ITEM INFORMATION' section of the filing.

What is the earliest event date reported in this 8-K filing?

The earliest event reported in this 8-K filing occurred on January 8, 2024, as stated under 'Date of Report (Date of earliest event reported): January 8, 2024'.

What is the trading symbol and exchange for Rent the Runway, Inc.'s common stock?

Rent the Runway, Inc.'s Class A common stock, with a $0.001 par value per share, trades under the symbol 'RENT' on the NASDAQ exchange, as indicated in the 'Securities registered pursuant to Section 12(b) of the Act' section.

What is the business address of Rent the Runway, Inc. as listed in the filing?

The business address of Rent the Runway, Inc. is 10 Jay Street, Brooklyn, New York 11201, according to the 'BUSINESS ADDRESS' section of the filing.

What is the fiscal year end for Rent the Runway, Inc.?

The fiscal year end for Rent the Runway, Inc. is January 31, as stated in the 'FILER: COMPANY DATA' section under 'FISCAL YEAR END: 0131'.

Filing Stats: 1,466 words · 6 min read · ~5 pages · Grade level 13.7 · Accepted 2024-01-09 08:00:27

Key Financial Figures

Filing Documents

05 Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities. On January 8, 2024, the Board of Directors of Rent the Runway, Inc. (the "Company") approved a plan designed to focus its workforce and cost structure on key growth opportunities and support its profitability goals, consistent with the Company's anticipated budget for fiscal year 2024 (the "Restructuring Plan"). The initiative includes a reduction in workforce that will involve approximately 10% of its corporate employees. The Restructuring Plan is expected to be substantially completed by the end of the fourth quarter of fiscal 2023 and fully completed by the end of the second quarter of fiscal 2024. The Company expects to incur charges of approxim ately $3 million to $4 million for the Restructuring Plan, substantially all of which is expected to be incurred in the fourth quarter of fiscal year 2023. These charges are expected to consist of approximately $2 million to $3 million of cash charges for employee severance and related costs and immaterial non-cash stock compensation expense in connection with the acceleration of certain equity awards. In addition, the charges are expected to include a non-cash impairment charge of Company assets of approximately $1 million. The Restructuring Plan is expected to result in approximately $11 million to $13 million o f annualized run rate cash savings, which primarily includes the reduction in force, with some open role closures/reduced backfills and excludes potential hiring of new employees or other additions to the Company's costs and expenses. The Company may incur additional expenses not currently contemplated due to events associated with the Restructuring Plan. The charges that the Company expects to incur in connection with the Restructuring Plan and annualized run rate cash savings are estimates and subject to a number of assumptions, and actual results may differ materially. Item 5.02 Departure of Directors or Certain Officers; Election of Dire

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 10.1 T ransition Agreement between the Company and Anushka Salinas, dated January 8, 202 4 . 104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K ("Form 8-K") contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this Form 8-K that do not relate to matters of historical fact should be considered forward-looking statements. These statements include, but are not limited to, statements regarding the Company's expected charges and cost savings associated with the Restructuring Plan as well as the expected completion date of the Restructuring Plan. In some cases, you can identify forward-looking statements because they contain words such as "aim," "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "toward," "will," or "would," or the negative of these words or other similar terms or expressions. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are based on information available at the time those statements are made and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management as of that time with respect to future events. These statements are subject to risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control, that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include risks related to the Company's ability to achieve anticipated cost savings and operate within its anticipated budget. Additional information regarding these and other risks and uncertainties that could cause actual results to differ materially from the Comp

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. RENT THE RUNWAY, INC. Date: January 9, 2024 By: /s/ Sid Thacker Sid Thacker Chief Financial Officer

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