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YesCare to Wind Down; Rent the Runway Loses CFO
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Good day and welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Friday, May 22. In today's briefing, prison healthcare provider YesCare is set to wind down its operations after receiving interim bankruptcy court approval to use cash collateral to pay its employees. And Rent the Runway CFO Siddharth Thacker has resigned, just days after the exit of longtime CEO Jennifer Hyman from the clothing-subscription platform.
The newsletter won't be published Monday in observance of Memorial Day in the U.S. We will be back Tuesday.
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YesCare, a successor company to Corizon Health, filed for bankruptcy last week after a previous deal fell through. Photo: Pia Bayer/dpa/ZUMA Press
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YesCare Wins Approval to Use Cash for Wages, Plans Wind-Down
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YesCare received interim approval from a bankruptcy court to use a lender’s cash to pay 1,500 employees, while the prison healthcare contractor says it is likely to wind down its business.
Judge Luis Rivera said Thursday that he would allow the use of cash collateral for the company to fund operations, including paying nearly $10 million in wages.
Representatives from the City of Philadelphia and Brevard County in Florida sought to terminate their contracts with YesCare at the hearing.
YesCare continues to seek bankruptcy financing to support its chapter 11 proceedings, but no commitments have emerged so far, according to a Tuesday filing in the U.S. Bankruptcy Court in Fort Myers, Fla. YesCare lawyer Jeremy Johnson said Thursday it plans to wind down the business.
The company earlier this month sought chapter 11 protection after a failed attempt by former affiliate Tehum Care Services to resolve mass-tort liabilities. YesCare has lost nearly 80% of its revenue since a $307 million jury verdict against it earlier this year, it said in a recent filing.
—Becky Yerak
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Earlier: YesCare sought chapter 11 protection on Friday, following a failed attempt by its former affiliate, Tehum Care Services, to resolve mass-tort liabilities through a Texas Two-Step bankruptcy.
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Rent the Runway has cut roughly $40 million in costs over the past three years as the business struggles with changing tastes and new competitors. Photo: Andrew Kelly/Reuters
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Rent the Runway CFO Resigns a Week After CEO Departure
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Rent the Runway’s C-suite overhaul deepened this week as Chief Financial Officer Siddharth Thacker resigned, days after the clothing-subscription platform lost its chief executive.
Thacker will step down on or about June 3, immediately following the company’s first-quarter fiscal 2026 earnings report, according to a filing with the SEC. The company has started a search for his successor.
The departure adds to a leadership departure when co-founder and longtime CEO Jennifer Hyman stepped down last week from her executive roles, handing the reins to interim CEO Teri Bariquit.
Rent the Runway said that Thacker’s exit isn’t because of any disagreements regarding the company’s operations, financial statements or accounting practices.
The company also reaffirmed its full-year 2026 financial guidance.
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Spandex Maker Lycra Emerges From Chapter 11
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Lycra emerged from chapter 11 bankruptcy protection after completing a restructuring that cut more than $1.2 billion in long-term debt and brings in over $75 million in new financing.
The company said the process allows it to focus on investing in innovation, customer partnerships and global operations. The company said it has continued operating without disruption throughout the restructuring.
Dean Williams, chief financial officer, has been named interim chief executive officer while the company conducts a search for a permanent replacement. Former CEO Gary Smith has stepped down. The company also named a new board.
Advisers include Linklaters, Haynes Boone, Houlihan Lokey and FTI Consulting.
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Worries about inflation have dampened expectations for the spring home-buying season. Photo: Erin Hooley/Associated Press
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Mortgage Rates Hit a Nine-Month High in Blow to Prime Buying Season
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Mortgage rates this week rose to the highest level since August, more bad news for home shoppers during what is usually the busiest time of the year for home sales.
The average rate on a 30-year fixed mortgage rose to 6.51% this week, from 6.36% last week, Freddie Mac said Thursday.
Higher mortgage rates and expensive home prices are keeping many would-be buyers on the sidelines. Rising costs in many places for home insurance and property taxes have also spooked buyers.
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