Online subscription fashion retailer and personal stylist Stitch Fix is losing its COO Julie Bornstein — perhaps at an inopportune time. In May, Stitch Fix hired investment banks Goldman Sachs and JPMorgan Chase to lead an initial public offering (IPO) that could value the retailer between $3 billion and $4 billion, according to Reuters.
TechCrunch reported that the retailer already has confidentially filed the IPO. Startups are allowed to file confidentially for IPOs under the JOBS Act, allowing them to test the waters prior to formally releasing their company’s inner workings. While an IPO filing date has not been confirmed, Stitch Fix fed into the speculation in June when it appointed a new CFO, Paul Yee.
Bornstein, who served as the number two executive at Stitch Fix, said in a statement that she was stepping down “to pursue a new challenge.” In her role at Stitch Fix, she oversaw all marketing, operations and customer experience teams, and reported to Founder and CEO Katrina Lake. She also previously served on the Stitch Fix board of directors.
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Prior to her work at Stitch Fix, Bornstein served in various executive positions at Sephora, Urban Outfitters and Nordstrom over 17 years.
Stitch Fix has been cash-flow positive since 2014 and profitable since 2015, according to Recode. The company also reeled in revenue of $730 million for the fiscal year ending in July 2016, a major success story in subscription retail, where many entrants struggle to reach profitability.
Various venture capital firms have invested a total of $42.5 million in Stitch Fix, including Baseline Ventures, Benchmark, Lightspeed Venture Partners and Western Technology.
