CaaStle, an innovative startup that commenced operations in 2011 as a subscription service catering to plus-sized apparel, subsequently transitioned in 2018 into a platform for inventory monetization aimed at clothing retailers, is currently encountering significant financial challenges, as reported by Axios.

According to a leaked correspondence from the board, Axios has reported that the company is nearing insolvency, CEO Christine Hunsicker has tendered her resignation, and law enforcement agencies are probing into purported financial improprieties.

CaaStle did not promptly furnish a response to an inquiry for commentary. TechCrunch observed that CaaStle's employment portal indicates the absence of any current vacancies, which is frequently regarded as an unfavorable indicator for a nascent enterprise.

The startup has amassed a cumulative total exceeding $530 million, with its most recent funding round yielding $43 million in 2019, according to PitchBook's estimations. While this may represent a more significant surge than is typical for most startups, experts have indicated to TechCrunch that 2025 is poised to be yet another arduous year marked by a high incidence of startup failures.