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American Focus > Blog > Tech and Science > Fashion startup CaaStle appears to be in trouble
Tech and Science

Fashion startup CaaStle appears to be in trouble

Last updated: March 31, 2025 3:32 pm
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Fashion startup CaaStle appears to be in trouble
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Financial Woes Plague Fashion Startup CaaStle

CaaStle, a startup that initially began in 2011 as a subscription service for plus-sized clothing, has now found itself in dire financial straits. In 2018, the company pivoted to become an inventory monetization platform for clothing retailers. However, according to a report by Axios, CaaStle is on the brink of running out of funds.

The situation has been further exacerbated by the resignation of CEO Christine Hunsicker amidst allegations of financial misconduct, which are currently under investigation by law enforcement, as revealed in a leaked letter from the board.

Despite these developments, CaaStle has remained tight-lipped and has not provided any official comments on the matter. A closer look at their job board reveals that there are currently no open roles, a potential red flag for the company’s operations.

Having raised over $530 million in total funding, with the last round amounting to $43 million in 2019, according to Pitchbook estimates, the financial troubles facing CaaStle signal a challenging road ahead. Industry experts warn that 2025 could see a surge in failed startups, with CaaStle being a prominent example of the struggles faced by companies in the current economic climate.

See also  Are Skinny Jeans Coming Back To The Fashion Frontlines?
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