CaaStle, a startup launched in 2011 as a plus-sized clothing subscription service, which transitioned into an inventory monetization platform for clothing retailers in 2018, is reportedly facing significant financial challenges, according to Axios.

As per Axios, the company is on the verge of depleting its funds, its CEO Christine Hunsicker has stepped down, and law enforcement is investigating alleged financial misconduct, as cited from a leaked letter from the board.

When approached for a comment, CaaStle did not provide an immediate response. Notably, a review of CaaStle’s job board by TechCrunch indicates that it currently has no open positions, a sign that is often indicative of difficulties within a startup.

According to PitchBook estimates, the startup has raised over $530 million in total funding, with its last funding round being $43 million in 2019. Although the situation might appear particularly dire for CaaStle, industry experts have pointed out to TechCrunch that 2025 is anticipated to be another challenging year for startups, with a potentially high rate of failures.