Caastle Board Financial Narrow and Employees Approach confirms

Caastle, a startup launched in 2011 as a subscription service in plus clothing and It later became the inventory liquefaction platform for the retail tradersIt faces financial difficulties, the company emphasized the techcrunch after a Axios report.

Quoting a letter from the Board of Directors, Axios reported that the company has almost deviated from money, and CEO Christine Honsker resigned from its executive role and the council, and the company included the application of the law to investigate the alleged financial misconduct.

The company also confirmed to Techcrunch that it imposed all its employees.

“The Board of Directors is disappointed by the behavior that led to this moment. Our immediate focus focuses on facing the challenges of the company, supporting our employees, and maintaining the value of technology and commercial operations. We are regrettable to compel to be temporarily subject to our employees, but we believe that this will lead to the company’s status better to recover from our current situation,” the company said in an email statement after interrogating the company’s condition.

Caastle raised more than 530 million dollars, with its last tour in 2019 raised by $ 43 million, according to Pitchbook estimates.

In that message, It was martyred by PuckThe Board of Directors claims that Honsker has misled some of the company’s investors about financial performance, and for the company’s capital and distinguished shares, including “fake” audit opinions.

Axios and Puck stated that days before Hunsicker came out of the company, it was outside the fundraising, and claims about the company’s health finances.

Axios noticed that if the Board’s allegations lead to a fraud case against the founder, this will be one of the largest of these cases ever.

Last week, Charlie Gavis, founder of Frank Startup Frank, which was purchased by JPMorgan for $ 175 million, I condemn the bank’s fraud. The bank claimed that Gavis had amplified the number of customers. But Caastle’s investment numbers are three times.

Although this may not be a typical start -up closing experience, experts told Techcrunch that 2025 on the right path to be another brutal year For failed emerging companies.