As exits go, Christine Hunsicker’s was a doozy — and while the fallout started right away, it’s still not clear just what comes next.
Hunsicker is already out as chief executive officer of fashion rental platform CaaStle. But the rental cheerleader and one-time panelist on “Project Runway: Fashion Startup” has developed deep ties in the fashion industry, most recently teaming with Brendan Hoffman to cofound P180, which controls Vince Holding Corp. and has stakes in Elyse Walker and Altuzarra and has been actively looking to buy into other brands and retailers.
Industry sources who have interacted with Hunsicker reacted with surprise after she resigned as CEO of CaaStle under a cloud, leaving the company’s finances in question and business in doubt.
The Princeton grad was viewed in the industry as sharp, plugged in to the financial world and passionate about the potential of rental to create better fashion businesses.
But CaaStle’s board picked away at that reputation, writing to the company’s investors on Saturday: “We have learned that Christine provided certain investors with misstated financial statements and falsified audit opinions, as well as capitalization information that understated the number of company shares outstanding.”
The board said CaaStle — which has helped retailers like Macy’s and brands like Derek Lam tap into the rental market — has a “powerful business model” and “valuable technology,” but the revelation was a severe blow to a seemingly stable operation.
“We want to be transparent about our current situation,” said the board’s letter, which was earlier reported by Axios. “The company is facing a severe and immediate liquidity problem. In addition, law enforcement authorities are investigating. We are fully cooperating with their investigations and are committed to maintaining the highest standards of integrity and accountability.”
The board said no other member of management has been found to be “aware of Christine’s misconduct.”
Hunsicker, who also stepped down from the company’s board, could not be reached for comment.
George Goldenberg, chief operating officer and board member, is acting as interim CEO and the company’s employees have been furloughed for two weeks.
The board is “actively evaluating the best path forward to preserve and maximize value, including a possible wind down, liquidation or strategic transaction.”
In a statement, CaaStle said: “Our immediate focus is on addressing the company’s challenges, supporting our employees, and preserving the value of our technology and business operations. We regret having to temporarily furlough our employees, but we believe this will best position the company to successfully recover from our current situation.”
The situation is clearly fluid and the question is now: What comes next for CaaStle, for Hunsicker and for the other businesses she has been attached to?
Last year, Hunsicker and CaaStle linked with Hoffman, the former CEO of Wolverine Worldwide, Lord & Taylor and neimanmarcus.com, to cofound P180 — which was initially called Project 180 for the way it intended to flip retail on its head by adding rental to the mix.
The company invested in Elyse Walker and Altuzarra in 2024 with plans to move inventory into a rental option instead of taking steep markdowns and ultimately managing the business more efficiently.
P180 then took a big step in January, buying 65 percent of the publicly held Vince for $19.8 million. Hunsicker had been chairman of P180 when the deal was cut, but is said to have left that role earlier this year.
Authentic Brands Group controls the Vince brand, but Vince Holding still runs the business, which logged sales of almost $293 million in 2023.
That gives Hoffman, who returned for a second tour as Vince CEO, a bigger platform to work his rental transformation.
Vince was always seen as primarily Hoffman’s project. He could not be reached for comment Tuesday.
Hunsicker’s current interest in P180 — if she has any — could not be immediately determined. Nor is it known just which law enforcement authorities are investigating what happened at CaaStle.
Vince shareholders at least don’t seem bothered by the association. Shares of the company rose 5.7 percent to $2.03 in midday trading on Tuesday.
