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CaaStle , a inauguration that launched in 2011 as a plus - sized clothing subscription service andlater became an stock list monetisation platform for clothing retail merchant , is facing fiscal difficulties , the company confirmed to TechCrunch come areport by Axios .
advert a letter from the board , Axios describe that the party is almost out of money , CEO Christine Hunsicker resigned from her chief operating officer use and the instrument panel , and the company has call for law enforcement to look into alleged fiscal misconduct .
The caller also affirm to TechCrunch that it furlough all of its employees .
“ The Board is deeply disappointed by the demeanor that has led to this moment . Our immediate focussing is on addressing the company ’s challenges , supporting our employees , and preserve the value of our engineering and stage business operations . We rue having to temporarily lay off our employees , but we believe this will best lay the company to successfully convalesce from our current position , ” the troupe read in an emailed argument after TechCrunch inquired about the company ’s status .
CaaStle raise over $ 530 million sum , with its last daily round evoke in 2019 at $ 43 million , PitchBook estimates .
In that letter of the alphabet , also reference by Puck , the control board is aver that Hunsicker misled at least some of the fellowship ’s investors about financial performance , and about the company ’s uppercase and outstanding shares , including two “ falsified ” audit opinion .
Both Axios and Puck have reported that days before Hunsicker exited the company , she was out fundraise , and making claims about the companionship ’s healthy finances .
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Axios has noted that if the board ’s allegations lead to a case of fraud made against the beginner , this would be one of the largest such case ever .
Last week , Charlie Javice , the founder of bookman loanword coating startup Frank , which was purchased by JPMorgan for $ 175 million , was found guilty of defrauding the bank . The bank claim Javice inflated the client reckoning . But the investment numbers for CaaStle are three time as large .
While this might not be a typical startup shutdown experience , experts have told TechCrunch that2025 is on track to be another brutal yearfor failed startups .
