Caastle, starting launched in 2011 as an over -sized clothing subscription service and Later became an inventory monetization platform for clothing tradersfaces financial difficulties, the company confirmed to Techcrunch after a Axios report.
Citing a letter from the board, Axios reported that the company is almost out of money, Director General Christine Hunsicker gave up its role as CEO and the board, and the company involved law to investigate alleged financial misconduct.
The company also confirmed to Techcrunch that it raged all its employees.
“The board is deeply disappointed by the behavior that has caused this moment. Our immediate focus is to address the company’s challenges, support our employees and maintain the value of our technological and business operations. Company on the company after the company’s company, but we believe this will best position the company, but we think this will best position the company, but we think this is best positioned by the company, but we think this is best positioned the company, but we think this is best positioned.
Kaastle raised more than $ 530 million, with its last round earned in 2019 at $ 43 million, estimates a Pitchbook.
In that letter, Also quoted by PuckThe Board claims that Hunsicker has abused at least some investors of the company’s financial activity and of the company’s capital and outstanding shares, including two “counterfeit” audit views.
Both Axios and Puck reported that days before Hunsicker left the company, she was financial and made claims about the company’s health funds.
Axios noted that if the board’s allegations lead to a fraud case committed against the founder, this would be one of the greatest such cases ever.
Last week, Charlie Javice, the founder of the start of student loan Frank, which was purchased by JPMorgan for $ 175 million, was found guilty of cheating on the bank. The bank claimed that Javice swelled the customer number. But the investment numbers for Kaast are three times larger.
Although this may not be a typical initial stopping experience, experts told Techcrunch that 2025 is in the way to be another brutal year For unsuccessful starts.
