As Rent the Runway approaches it's date for their IPO, cofounder Jennifer Fleiss has stepped down from the company. The news was first reported by Forbes.

This leaves cofounder and ceo Jennifer Hyman to run the company on her own. The two women have the distinction of raising 60 million dollars in Series E funding in 2016, the largest round for a women-led startup last year. The two entrepreneurs launched the business when they fresh out of Harvard Business School in 2009.

Fleiss will still remain with the company as a board member, and will also advise on recruitment. According to Forbes, Fleiss has been waiting for Rent the Runway to turn a profit before she bowed out, which it did in 2016 in addition to surpassing 100 million dollars in revenue for the first time. They also debuted their first shop-in-shop format with Neiman Marcus too.

Fleiss and Hyman each own 13 percent stake in Rent the Runway. In the wake of Fleiss' departure, the company will be left with 1000 employees, and one of the most diverse and women driven staffs among any fashion company.

"85 percent of our employees are not White men," Hyman said to Forbes.

While Rent the Runway initially cornered the market for renting luxury apparel and accessories, competitors have been popping up to try and give them a run for their money. Poshare has been a competitor on the radar that could prove to be a major new player in the market. The Houston-based company allows to companies to rent from a curated list of boutiques, designers, retailers and wholesalers. Could they possible give Rent the Runway a run for their money?

 

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