"The largest fashion tech scandal of our generation?"
This week's All Things Fashion Tech Newsroom: Its hard to celebrate recent advancements & successful fundraising with CaaStle's looming financial misconduct allegations overhead.
CaaStle CEO allegedly misrepresented the company’s performance to investors
Sanctuary launches resale platform under the name Resanctuary
New Look secures 30 million pounds to fund digital growth plan
Alvanon’s phygital tools make up a Sizing Intelligence Ecosystem
Gabriela Hearst launches its first sustainably made sneaker
CaaStle CEO Hunsicker resigns over fraud claim as firm teeters
By Bloomberg
Retail entrepreneur Christine Hunsicker has resigned from her position as chief executive officer of CaaStle after the fashion-technology startup’s board of directors alleged she misrepresented the company’s performance to investors, according to a March 29 letter to shareholders seen by Bloomberg News.
CaaStle faces “a severe and immediate liquidity problem,” and the board is considering options including a possible wind down, liquidation or strategic transaction, according to the letter. The company is planning a two-week-long furlough for its employees. Law enforcement authorities are also investigating the matter and the company is cooperating, the letter said.
Hunsicker didn’t respond to calls and emails seeking comment.
“The performance to date has not matched what Christine claimed — we have learned that Christine provided certain investors with misstated financial statements and two falsified audit opinions, as well as capitalization information that understated the number of company shares outstanding,” the letter said.
“The board is deeply disappointed by the conduct that has led to this moment,” a representative for CaaStle said in a separate statement to Bloomberg. “Our immediate focus is on addressing the company’s challenges, supporting our employees, and preserving the value of our technology and business operations.”
CaaStle, based in New York, began as Gwynnie Bee Inc. in 2011 and changed its legal name in 2018, according to an auditor’s report attached to the letter. It provides rental subscription services for owned and third-party retailers. The company has retained ICR for restructuring and strategic communications advice, according a person familiar with the matter, who asked not to be named discussing confidential information.
Sanctuary launches resale platform under the name Resanctuary
By Vivian Hendriksz
California-based women's lifestyle label Sanctuary has launched a resale marketplace under the name Resanctuary.
Powered by Treet, the new platform is an extension of the brand's existing values and sees it introduce a name mantra: Reuse. Rewear. Resanctuary. Part of the brand's ongoing commitment to extending the life of its products and conscious production, the resale marketplace encourages the Sanctuary community to rewear, share, and give their preloved garments a new home.
Helping the shift towards more circular economy business models, the new initiative is partly driven by customer feedback. "At Sanctuary, we've always strived to design collections that stand the test of timepieces you'll reach for again and again, and not just a single season," said Deb Polanco, co-founder and creative director of Sanctuary in a statement.
Both customers and Sanctuary can list items for sale on Resanctuary. All styles listed by Sanctuary are guaranteed to be 100 percent unworn, while Peer-to-Peer purchases include a 72-hour claim window for misrepresentation, covering authenticity and condition.
New Look secures 30 million pounds to fund digital growth plan
By Danielle Wightman-Stone
High street fashion retailer New Look, one of the UK’s leading womenswear brands in the 18-44 sector, has secured a 30-million-pound investment from its shareholders to accelerate its digital transformation and optimize its online experience for customers.
The retailer said the significant investment would “supercharge” its digital growth as it believes the “opportunity is clear” to capture a bigger slice of the UK’s online womenswear market, which it states stands at 4.3 billion pounds.
At the heart of its digital transformation will be the expansion of New Look’s proprietary Enterprise Data Platform to deliver hyper-personalised shopping experiences. This cutting-edge technology uses data and AI to provide New Look’s customers with personalised marketing and a tailored shopping experience, leading to higher satisfaction and lower return rates. The retailer is looking to enhance insights, decision-making, and customer personalisation by leveraging real-time analytics to improve supply chain speed and efficiency and anticipate customer trends.
New Look is also looking to optimise the app and online shopping journey by improving search and product discovery to make it easier for customers and streamlining the checkout experience, improving the customer journey to drive sales growth.
Alvanon, A Pioneer in Sizing Technology
53% of returns in 2023 were due to sizing and fit, causing brands to spend over $150bn according to Coresight Research. What if there was a better way to serve your consumer? Alvanon, a pioneer in fashion technology, is innovating sizing with a data-driven, AI-powered phygital approach allowing brands to design, produce, merchandise and sell fashion in completely new, highly efficient and sustainable ways with dramatic results.
For decades brands have relied on inconsistent sizing and outdated body standards, leaving consumers frustrated and businesses scrambling to manage excessive returns with significant financial and environmental costs. In an era where precision drives loyalty and sales, treating size as an afterthought is no longer an option—it’s a costly mistake.
Alvanon’s phygital tools make up a Sizing Intelligence Ecosystem designed to bridge the gap between manufacturers, retailers, and end consumers by integrating:
Physical fit forms and corresponding digital twins ensuring consistency across product categories
Virtual avatars enabling precise 3D design and virtual fittings
Advanced AI-driven analytics e-commerce platforms to help brands better understand purchasing patterns and inventory needs, improving efficiency
MyAlva, a consumer-facing app in beta that will give shoppers personalized sizing recommendations based on real measurements
“Sizing is brand loyalty,” explains Eric Lee, Executive Director, Americas at Alvanon. “Customers stick with brands that fit them well, but the moment sizing becomes unpredictable, they move on. We ensure consistency across the supply chain so brands can focus on what really matters—creating great products that actually serve your consumer.”
Gabriela Hearst launches its first sustainably made sneaker
By Danielle Wightman-Stone
Luxury fashion brand Gabriela Hearst has launched its first sustainably crafted sneaker, featuring materials that have a lower impact on the environment.
The Ohio, which debuted on the catwalk during Gabriela Hearst’s spring/summer 2025 show, has been designed to reflect the brand’s foundations in quality and craftsmanship while lowering its environmental impact.
Made in Italy, the sneaker features rubber soles composed of 30 percent recycled materials, while its stitches are made of 30 percent recycled polyester certified by the Global Recycled Standard. The sole has also been assembled using water-based glue, which uses fewer chemicals than solvent-based glue and is free from polyurethane.
Gabriela Hearst also sourced 100 percent leather from a Tannery Certified by Leather working group for its upper, laces and lining.
Prices range from 835 to 915 pounds. The sneaker is availRahul Mishra travels the Silk Route at Lakmē Fashion Week in partnership with FDCIable at Gabriela Hearst stores in London, New York, Beverly Hills, and Tokyo and on gabrielahearst.com.
Fashion Traceability Platform Fairly Made Raises €15 Million
By Sarah Kent
Sustainable fashion scale-up Fairly Made has raised €15 million ($16.2 million) from a group of impact-focused venture funds to accelerate its ambitions to expand globally, the company said Thursday.
The Paris-based tech-based tech platform works with companies including LVMH, Balmain and SMCP to help them trace supply chains, measure their environmental impact and develop digital passports to store the information.
More big fashion brands are seeking out such services as European regulators toughen up disclosure requirements for supply chain and environmental data.
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CaaStle’s fraud immediately raises questions about the financial due diligence process that preceded investments into the company.
On a more macro level, I wonder how this hurts the perception of retail-tech/fashion-tech recommence platforms - with questions surrounding long-term profitability and viability of business models.