Caastle, a startup that was launched in 2011 as a large -sized clothing subscription service and then became an inventory monetization platform for clothing retailers, faces financial difficulties, the company confirmed to TechCrunch after a Axios report.
Citing a letter from the Board, Axios reported that the company is almost without money, the CEO Christine Hunsicker resigned from its role as CEO and the Board, and the company has involved the police to investigate the alleged financial misconduct.
The company also confirmed to TechCrunch that it beat all its employees.
“The Board is deeply disappointed by the behavior that has led to this moment. Our immediate approach is to address the company’s challenges, support our employees and preserve the value of our technology and commercial operations. We regret having to obtain a temporarily temporarily permit from our employees, but we believe that this will better position the company to recover from our current situation,” he said in an email statement after the technology that consulted the state of the company.
Caastle raised more than $ 530 million in total, with its last round raised in 2019 at $ 43 million, pitchbook estimates.
In that letter, Also cited by PuckThe Board alleges that Hunsicker cheated at least some of the company’s investors on financial performance, and about the company’s capital and pending actions, including two “falsified” audit opinions.
Both axes and Puck have reported that days before Hunsicker left the company, she was raising funds and making statements about the healthy finances of the company.
Axios has indicated that if the accusations of the Board lead to a case of fraud made against the founder, this would be one of the greatest cases of this type.
Last week, Charlie Javice, the founder of the startup of the application for student loans, Frank, which was bought by JPMorgan for $ 175 million, was declared guilty of defrauding the bank. The bank said Javice inflated customer count. But the investment numbers for Caastle are three times larger.
While this might not be a typical starting experience experience, experts have told TechCrunch that 2025 is on the way to being another brutal year for new failed companies.
