Susan Scafidi, founder and director of Fordham Law’s Fashion Law Institute, spoke with Women’s Wear Daily about what the U.S. Attorney’s Office’s indictment against Christine Hunsicker, founder and former CEO of fashion tech company CaaStle, means for the fashion industry.
CaaStle filed for Chapter 7 bankruptcy on June 20 and is expected to be liquidated.
For Hunsicker, who was once a judge on a “Project Runway” spin-off, featured on Crain’s New York Business “40 Under 40” list and selected as one of Inc.’s “Most Impressive Women Entrepreneurs,” it’s been a hard fall and one that is still reverberating through fashion — although without the impact that it would have had if CaaStle’s business were really as large as advertised.
“Given that both fashion brands and women entrepreneurs have a harder time attracting investment capital than stereotypical tech guys with a startup, this may have indirect negative effects for the industry,” said Susan Scafidi, founder and director of the Fashion Law Institute at Fordham Law School. “Whatever the ultimate truth of the allegations, it’s sad to see another female founder go up in flames.”
Read “Christine Hunsicker Indicted in $300M Fashion Rental Fraud Case” on Women’s Wear Daily.