08:38 AM EDT, 08/21/2025 (MT Newswires) -- Rent the Runway ( RENT ) said Thursday it has initiated a recapitalization to enhance its balance sheet and financial flexibility and reduce its debt and interest expenses.

Under the agreement, creditor APS will convert $243 million of its debt investment into equity ownership, and APS, STORY3, and Nexus will contribute $20 million in new capital, the company said.

Rent the Runway ( RENT ) will continue to operate as a public company and trade under the ticker symbol "RENT" on Nasdaq.

Upon the consummation of the transaction, expected on Dec. 31, Peter Comisar of STORY3 and Damian Giangiacomo of Nexus will join Rent the Runway's ( RENT ) board, the company said.

Shares of the company rose more than 15% in recent premarket activity Thursday.

Price: 5.19, Change: +0.70, Percent Change: +15.72