Latest news with #fashionRental
Yahoo
23-06-2025
- Business
- Yahoo
CaaStle Files for Chapter 7 Bankruptcy, Setting Up Liquidation
CaaStle Inc. has come tumbling down. The scandal plagued rental pioneer filed for Chapter 7 bankruptcy in Delaware, setting up a liquidation of the business less than three months after chief executive officer Christine Hunsicker left the company under a cloud. More from WWD Vince Meets Expectations With Slight Q1 Declines CaaStle Meltdown: P180 Sues 'The Hunsicker Enterprise' for Conspiracy Vince Sees Q4 Sales and Profitability Gains, but Projects Q1 Declines Amid Macro Uncertainties The bare-bones filing said the company had $10 million to $50 million in both assets and liabilities and between 200 and 999 creditors. After what's left of CaaStle is sold off, the filing said there should be funds left over to give to unsecured creditors. The paperwork was signed by George Goldenberg, a board member who was chief operating officer and took over as interim chief executive officer when Hunsicker left in late March. CaaStle's attorney did not immediately respond to a WWD request for comment Monday. A letter from the board to shareholders this spring accused Hunsicker of giving investors 'misstated financial statements and falsified audit opinions' and said the company had lost $510 million over the years, almost all of the $520 million in funds it raised. Law enforcement authorities were said to have started investigating the matter. But the scandal has done more than fell an apparent leader in the still-developing space of fashion rental, it's complicated life for Brendan Hoffman's P180. The company, founded with Hunsicker and partially owned by CaaStle, looked to invest in brands and then rework their operations, using CaaStle's technology to rent out slow-moving inventory instead of taking steep price cuts. As an investment thesis, it was novel and led to deals with Elyse Walker, Altuzarra and, most prominently, Vince, which P180 bought a controlling stake of in January. While Vince is charging ahead with Hoffman at the helm, P180 is trying to pick up the pieces and is taking both CaaStle and Hunsicker to court. This month, P180 sued Hunsicker, Goldenberg and others under the Racketeering Influenced and Corrupt Organizations Act. The federal suit said P180 was taken in by 'The Hunsicker Enterprise,' which singled out the former CEO as the 'ringleader of a conspiracy.' 'Hunsicker is a world-class fraudster ranking alongside the likes of Bernie Madoff and Elizabeth Holmes,' the suit said. 'She lied to the world to make it appear that CaaStle was a success, lied specifically to Hoffman about CaaStle and hid CaaStle's financial data from Hoffman. She presented herself as a skillful and successful entrepreneur who built a robust e-commerce business, raised hundreds of millions of dollars for it and commanded a board of notable leaders in corporate governance.' As soon as allegations started to swirl around Hunsicker, it was clear the matter was headed for court. And now it's there three-times over — before judges in New York state, at the federal level and in bankruptcy court. Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
12-06-2025
- Business
- Yahoo
CaaStle Meltdown: P180 Sues ‘The Hunsicker Enterprise' for Conspiracy
It took Christine Hunsicker 14 years to build CaaStle up into what looked like a pioneering fashion rental service with hundreds of thousands of subscribers and a $1.4 billion valuation. But it took almost no time at all for the start-up case study to move from helping to buy fashion brands to devolving almost entirely into scandal. More from WWD Vince Sees Q4 Sales and Profitability Gains, but Projects Q1 Declines Amid Macro Uncertainties Fashion's Enron? P180 Blasts CaaStle's Christine Hunsicker in Fraud Lawsuit CaaStle Gets $2.75M Bridge Loan to Plan Chapter 11 Filing and Weigh Strategic Transactions Hunsicker was working with Brendan Hoffman's P180 to buy control of Vince Holding Corp. in late January and just two months later was out as CaaStle's chief executive officer, accused of doctoring financial statements, racking up losses of more than $510 million and more. The narrative is flipping again, from business breakdown to legal fallout. Already law enforcement was said to be investigating. Now P180 — which was cofounded by Hoffman and Hunsicker and minority-owned by CaaStle — is arguing in a new federal lawsuit that Hunsicker is more than a solitary bad actor, but the 'ringleader of a conspiracy' that violated the Racketeering Influenced and Corrupt Organizations Act, or RICO. 'This case is a tale of lies, betrayal and cover up,' said the P180 suit, which was filed May 27 and also names Jaswinder Pal Singh, George Goldenberg, Scott Callon and Chirag Jain as defendants. They are all tied to CaaStle. A spokesperson for the rental service did not immediately address WWD questions regarding the company or the suit on Tuesday. Hunsicker could not be reached. The federal case follows similar lines as a New York state suit that P180 filed against CaaStle, but adds more details and implicates more players. It is still Hunsicker at the center, though. Hoffman had worked with her before, during his first stint as CEO of Vince, when he dabbled in rental. But it was later, after he left the top job at Wolverine Worldwide in 2023, that Hunsicker made him a real rental believer. According to the suit, Hoffman came to believe that, 'Apparel retailers could reclaim — and perhaps even multiply — their valuation by increasing their marginal gains on discounted merchandise. For years, valuation of apparel companies had declined to be just pennies per dollar of revenue. Hunsicker promised e-commerce scale — specifically, technology and logistics that would enable regular clothing shipments to customers on a massive level — that would allow apparel companies to increase their margin on what otherwise would be discounted merchandise.' In a nutshell, the premise was that renting out instead of discounting goods that don't sell at full price would boost margins. It was a revelation profound enough that Hoffman created P180, marrying his expertise and relationships with Hunsicker's 'self-proclaimed technological and e-commerce prowess,' the suit said. 'What Hoffman did not know — but which eventually has become clear — is that Hunsicker is a world-class fraudster ranking alongside the likes of Bernie Madoff and Elizabeth Holmes,' the suit claimed. 'She lied to the world to make it appear that CaaStle was a success, lied specifically to Hoffman about CaaStle and hid CaaStle's financial data from Hoffman. She presented herself as a skillful and successful entrepreneur who built a robust e-commerce business, raised hundreds of millions of dollars for it and commanded a board of notable leaders in corporate governance. 'Hunsicker, though, did not act alone. She had co-conspirators…with whom she created her house of cards. Hunsicker and her co-conspirators repeatedly stated or implied that CaaStle had a large scale, a huge subscriber base and spectacular financials.' Instead of 'hundreds of thousands of subscribers and hundreds of millions of dollars in revenue, CaaStle itself had just a fraction of those subscribers, barely had any revenue, had supposedly spent hundreds of millions of dollars it received from investors, and had no viable business,' the suit said. 'The whole thing was a sham perpetuated by a pattern of persistent lying, obfuscation and, eventually, cover-up.' The suit repeatedly refers to the alleged conspiracy as 'The Hunsicker Enterprise.' Susan Scafidi, founder and director of the Fashion Law Institute at Fordham Law School, said the complaint 'recasts' the scandal, replacing a single mastermind with a conspiracy. 'It appears intended not only to get ahead of a government investigation but also to distribute the blame — and thus the potential financial liability — for alleged extreme financial misrepresentations, and also to tap into the enhanced damages available under RICO,' Scafidi said. 'If, as JFK noted, success has many fathers but failure is an orphan, this lawsuit aims to bring in as many key CaaStle players as possible for paternity tests — and the discovery process is likely to be in-depth and painful. 'The concept behind CaaStle was very compelling, and from a social perspective it's a pity that the circular and sharing economies of fashion seem so hard to monetize. But the big winners here may be the legal teams working to unravel the plot twists,' she said. There will be plenty to work with. P180's suit claims that 'The Hunsicker Enterprise' induced it to take self-dealing loans and had money 'fraudulently transferred out' of its bank account to both CaaStle and personal accounts. The alleged conspirators also overstated CaaStle's capabilities while P180 lined up investments in Vince and Altuzarra. Separately, CaaStle denied allegations in two cases filed against it in state court, one by a company that owns the name Express over use of the name Express Style Trial and the other by P180. CaaStle tried to get the state court suit by P180 thrown out, claiming it doesn't have standing to bring the case. But a P180 spokesperson said, 'CaaStle filed a motion to dismiss on a technicality that will soon be remedied and will not prevent the case from moving forward.' Best of WWD The Biggest Legal Battles Shaping the Fashion Industry Today PETA Asks Lululemon About Slaughterhouse Practices China's Livestreaming Star Viya Fined $210 Million for Tax Evasion
Bloomberg
06-06-2025
- Business
- Bloomberg
Rent the Runway's Comeback Plan
Rent The Runway's subscriber base is growing as the fashion rental company reworks its business model by offering more brands and debuting a new rewards program. Jennifer Hyman, CEO of Rent The Runway joined Bloomberg Open Interest to talk about the revamp. (Source: Bloomberg)
Daily Mail
01-06-2025
- Business
- Daily Mail
EXCLUSIVE I make THOUSANDS of dollars a month renting out my clothes to strangers
A woman who makes thousands of dollars per month renting out her clothes to strangers has lifted a lid on the lucrative side gig. Jess Work, 26, a fashion influencer from New York, spent years building up a massive collection of designer clothing pieces. But in late 2023, it dawned on her that many of the expensive items had only been worn by her once or twice, and were sitting untouched in her closet. So she started renting out her outfits on the app called Pickle, and flash forward to less than two years later, she's raked in more than $50,000 from the endeavor. While chatting with about it, Jess explained that she came up with the idea after seeing an ad for Pickle on TikTok 'Pickle is a peer-to-peer fashion rental platform that allows users to rent out or borrow designer and trendy clothing,' she dished. 'Through the app, individuals can list items from their own closets or shop from others', making it a sustainable and affordable way to access high-end fashion. 'Pickle is especially popular among content creators and fashion lovers who want to monetize their wardrobes or find unique pieces for events, shoots, and everyday wear.' She said she makes anywhere from $3,000 to $5,000 a month from the app, and estimates she's brought in at least $50,000 in total since she started near the end of 2023. She added that it's 'pretty manageable,' and only takes about a 'couple hours' out of her week. 'I usually price items based on the retail value, the brand, the season, how new or rare it is, and if it's already listed on the app,' she added. Pickle was founded by Brian McMahon and Julia O'Mara in 2022, and it has reportedly raised $20 million, per Business Insider. 'Rent your next look from the hottest closets in New York City,' reads Pickle's website. 'No subscriptions. Rent on-demand.' 'At Pickle, we envision a world where fashion is sustainable, accessible, and fun,' it continued. 'Our platform connects individuals with shareable closets, offering a dynamic and effortless rental experience akin to borrowing from a friend.' There's over 60,000 items for rent on the website right now, and you have the option to rent the clothing pieces for as little as one day and up to four weeks. 'We offer same-day local delivery through our courier service (think DoorDash, but for clothes!), in-person exchanges with the lender, or nationwide shipping,' it adds. Pickle, which also has a storefront in New York City, takes 20 percent of all transactions done on its app and 35 percent of transactions done in the store. 'Driven by a desire to break free from the endless cycle of fast fashion and embrace sustainability, Pickle was born,' the brand said of its store opening in 2023. 'Our online community has flourished, with tens of thousands joining our movement to redefine fashion consumption. 'Now, we're bringing that same spirit to our physical location, creating a space where style and community converge.' 'I usually price items based on the retail value, the brand, the season, how new or rare it is, and if it's already listed on the app,' she added. This romper costs $70 per week to rent Jess has 229 items available on her Pickle page, including a Meshki Pearl Top for $80 per week (left) and a Sandro Leather Jacket for $70 per week (right) Jess has 229 items available on her Pickle page, including a Meshki Pearl Top for $80 per week and a Sandro Leather Jacket for $70 per week. 'It's a great side hustle, especially if you love fashion or have pieces in your closet you don't wear often,' she gushed. 'If you're on the fence about buying something because of the price, it could do really well on the app - helping you make some money back or feel like it cost less in the end. 'I also recommend the app as a renter - it's perfect for weddings, last-minute trips, or anytime you want something fun without fully committing.'
