Caastle Board confirms financial difficulties, employees stand out

Caastle, Startup, which started in 2011 as a plus clothing subscription service later became a platform for revenue from inventory for retail of a garmentfaced financial difficulties, the company confirmed to TechCrunch after a AXIOS reportS

Referring to a letter from the Council, Axios announced that the company was almost without money, CEO Christine Hunsker resigned from its role as CEO and Council, and the company included law enforcement to investigate a supposed financial violation.

The company also confirmed to TechCrunch that it has enchanted all its employees.

“The council is deeply disappointed with the behavior that has led to this moment. Our immediate focus is on dealing with the challenges of the company, the support of our employees and maintaining the value of our technology and business operations. TechCrunch was questioned by the company’s condition.

Caastle raised over $ 530 million in total, with his last round raised in 2019 to $ 43 million, Pitchbook estimates.

In this letter, Also cited by PuckThe Council claims that Hunsicker has misled at least some of the company’s investors for financial results and the company’s capital and exclusive shares, including two “counterfeit” audit opinions.

Both Axios and Puck announced that days before Hunsicker left the company, she was raising funds and claims the company’s healthy finances.

Axios noted that if the claims on board lead to a case of fraud against the founder, it will be one of the largest such cases so far.

Last week Charlie Javis, founder of starting a student loan application, which was purchased by JPMorgan for $ 175 million, was found guilty of a bank fraudS The bank claims that Javice inflates the number of customers. But Caastle investment numbers are three times larger.

Although this may not be a typical start -up experience, experts told TechCrunch 2025 is about to be another brutal year For unsuccessful start -ups.