CaaStle, a startup originally founded in 2011 as a plus-sized clothing subscription service, is facing severe financial distress. The company confirmed that it has furloughed all employees and is nearly out of funds.

Former CEO Christine Hunsicker has resigned, and law enforcement is investigating allegations of financial misconduct, including misleading investors and using allegedly falsified audit opinions.

The board expressed disappointment and stated that their focus is on addressing challenges, supporting employees, and preserving the company’s technology and operations.