Caastle, a start that began in 2011 as a plus clothing reconciliation service and later became an inventory money platform for retailers of clothing, is facing financial difficulties, the company confirmed to Techcrunch after an Axios report.
Mentioning a letter from the board, Axios reported that the company is almost without money, CEO Christine Hunsicker resigned from its role of CEO and the board, and the company has involved the implementation of the law to investigate allegated financial behavior.
The company also confirmed to Techcrunch that it accompanied all its employees.
“The board is deeply disappointed by the behavior it has led at the moment. Our immediate focus is on addressing the challenges of the company, supporting our employees and maintaining the value of our technology and business operations. We regret temporarily asking to ask the status of the company.
Caastle collected over $ 530 million in total, with its latest round raised in 2019 with $ 43 million, Pitchbook estimates.
In that letter, also quoted by Puck, the Board is claiming that Hunsicker deceived at least some of the company’s investors for financial performance, and the company’s capital and unpaid shares, including two “forged” audit opinions.
Both axios and Puck reported that the day before Hunsicker left the company, she was out of fundraising and claiming the company’s healthy finances.
Axios has noticed that if board charges lead to a fraud case against the founder, it would be one of the largest cases ever.
Last week, Charlie Javice, the founder of starting the Frank student loan app, which was purchased by JPMORGA for $ 175 million, was found guilty of bank fraud. The bank claimed that Javice blew the client’s count. But Caastle’s investment numbers are three times larger.
While this may not be a typical start closing experience, experts have told Techcrunch that 2025 is on the right track to be another brutal year for failed beginnings.
