CaaStle, a startup that began in 2011 as a subscription service for plus-sized clothing and transitioned in 2018 to an inventory monetization platform for clothing retailers, is currently experiencing financial challenges, according to a report by Axios.

According to a leaked letter from the board, Axios reported that the company is nearing financial insolvency, CEO Christine Hunsicker has stepped down, and law enforcement is probing into suspected financial misconduct.

CaaStle did not provide an immediate response to a request for comment. TechCrunch observed that CaaStle's job board indicates there are currently no available positions, which is often a concerning sign for a startup.

The startup has secured over $530 million in total funding, with its most recent round of $43 million occurring in 2019, according to PitchBook estimates. Although this surge may be more significant than what most startups experience, experts have informed TechCrunch that 2025 is expected to be another challenging year for unsuccessful startups.