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 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.”

The board has appointed George Goldenberg, the firm’s chief operating officer and board member as interim CEO, according to the letter, details of which were first reported by Axios.

Rental services

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 to a person familiar with the matter, who asked not to be named discussing confidential information. 

Hunsicker also co-founded P180 with Brendan Hoffman, which aims to invest in or acquire brands and retailers to use CaaStle technology, according to a 2024 press release. In January, P180 announced that it had acquired a majority stake in Vince Holding Corp., which operates the Vince brand. It also has a stake in Altuzarra, a luxury brand.

President Donald Trump will announce his reciprocal tariff push on Wednesday during an event in the White House Rose Garden, his top spokeswoman said. 

White House Press Secretary Karoline Leavitt said Monday the announcement would feature “country-based” tariffs. She said the president is also “committed to implementing” sectoral duties, but that they were not the focus of the April 2 event and deferred to Trump about the timing of those. Members of Trump’s Cabinet would attend the announcement, Leavitt said.

“The president will be announcing a tariff plan that will roll back the unfair trade practices that have been ripping off our country for decades,” Leavitt told reporters at the White House. “It’s time for reciprocity and it’s time for a president to take historic change to do what’s right for the American people.”

Treasury Secretary Scott Bessent said in a Fox News interview Monday that the tariff announcement would be at 3 p.m. Washington time. 

Leavitt declined to provide details when asked about the rate of the reciprocal tariffs and which countries would be hit. She said there are “no exemptions at this time” when asked whether lower duties would be applied to products used by American farmers. 

Trump told reporters Sunday that he plans to launch reciprocal tariffs with “all countries,” countering speculation he could limit the initial scope of his April 2 announcement. 

But when asked Monday if he was planning a universal tariff or levies on individual countries, Trump demurred, saying “you’re going to see in two days, which is maybe tomorrow night or probably Wednesday.”

“They’re reciprocal. So whatever they charge us, we charge them, but we’re being nicer than they were,” he said. “They took advantage of us, and we are going to be very nice by comparison to what they were. The numbers will be lower than what they’ve been charging us, and in some cases may be substantially lower.”pported.

Earlier Monday, Trump’s spokeswoman pointed to examples of tariff rates from the European Union, Japan, India and Canada while speaking to reporters, signaling those entities are likely among the targets of the president’s new levies. 

“This makes it virtually impossible for American products to be imported into these markets, and it has put a lot of Americans out of business and out of work over the past several decades,” Leavitt said. 

Trump has billed April 2 as the launch of sweeping duties that are the centerpiece of his plan to rebalance global trade, boost U.S. manufacturing and inject tariff revenue into government coffers to fund domestic priorities, including a major tax cut. 

The president has preceded Wednesday’s tariff announcement with levies on Canada, Mexico and China — the US’s three largest trading partners — as well as automobiles, steel and aluminum. Import taxes on copper could come within several weeks. Trump has also threatened tariffs on pharmaceutical, semiconductor and lumber imports. 

Uncertainty surrounding his plans, which have often changed and been subject to last-minute carveouts, have triggered fears they could blow up supply chains and raise prices for U.S. consumers. That angst has fueled a weeks-long sell off on Wall Street that extended into Monday. 

“Wall Street will work out just fine in this administration, just like they did in the first term,” Leavitt said.

Accounting firms are facing unprecedented challenges. With the rise of automation, changing client expectations, and staffing challenges, traditional differentiation strategies—competitive pricing, incremental service improvements, or modest technology adoption no longer create sustainable competitive advantages.

Continuous innovation is no longer something only tech and “forward-thinking” individuals should do to remain relevant. It’s an imperative to the longevity of every business in today’s quickly evolving market—including accounting firms.

The Innovation Imperative

Recent data from McKinsey shows that companies that prioritize innovation outperform their peers by 30% in revenue growth over a five-year period. Yet many accounting firms still approach innovation reactively, waiting until market pressures force their hand.

This reactive approach creates three common pitfalls:

1. Rushed innovation often results in half-baked solutions that fail to address core client needs.
2. Reactive innovation creates organizational whiplash, as teams struggle to adapt to rapid, unplanned changes.
3. Lagging response time to market changes creates risk that competitors have already established themselves.

The accounting firms that will thrive in the coming decade aren’t necessarily the largest or most established—they’re the ones that develop the organizational muscle to innovate continuously as client needs evolve and market conditions change. This is where having an innovation framework is key.

How do you build an innovation framework? Consider these three components:

1. Customer-Centric Problem Discovery

True innovation begins with deeply understanding your clients’ needs—not just what they tell you, but what their behaviors and pain points reveal. Too many firms rely on superficial feedback instead of identifying fundamental problems worth solving.

2. Create a Rapid Experimentation Culture

Innovation thrives in environments where testing new ideas is encouraged and failure is viewed as a learning opportunity. Accounting firms often struggle here, with risk-averse cultures that prioritize precision over exploration.

To foster rapid experimentation:

• Create dedicated “innovation sprints” where teams can prototype new ideas
• Establish appropriate metrics for innovation initiatives that balance short-term performance with long-term potential
• Develop a “minimum viable product” mindset that emphasizes quick market feedback

3. Cross-Functional Innovation Teams

Innovation rarely emerges from isolated departments. The most powerful ideas come from combining diverse perspectives and skill sets.

To break down silos:

• Form cross-functional innovation teams that include representatives from technology, client services, and business development
• Create clear accountability structures without imposing rigid processes that stifle creativity
• Establish regular forums for sharing insights across the organization

Take a Phased Approach to Innovation Implementation

For accounting firms looking to enhance their innovation capabilities, a phased approach makes this shift more manageable:

Phase 1: Assessment

• Evaluate your current innovation capabilities
• Identify organizational barriers to experimentation
• Set baseline metrics for innovation outcomes

Phase 2: Foundation Building

• Develop structured innovation processes
• Establish cross-functional teams
• Allocate resources specifically for innovation initiatives

Phase 3: Execution

• Launch pilot programs in targeted areas
• Scale successful initiatives
• Measure and communicate results to build organizational momentum

Common Pitfalls to Avoid

In our innovation journey, we’ve encountered several common pitfalls that accounting firms should be wary of:

• Over-reliance on competitor analysis: While understanding the competitive landscape is important, innovation requires looking beyond what others are doing.
• Analysis paralysis: Gathering data is valuable, but at some point, you need to act on incomplete information.
• Insufficient resource allocation: Innovation requires dedicated time and funding—it can’t be an afterthought.
• Fear of cannibalizing existing products: Sometimes, the best innovation requires disrupting your own successful offerings.

Measuring Innovation Success

Effective innovation measurement requires both leading and lagging indicators:

• Leading indicators might include the number of experiments conducted, client feedback on service prototypes, or team feedback on new technologies.
• Lagging indicators include revenue from new services, client retention improvements, or efficiency gains.

The key is balancing quantitative metrics with qualitative assessments of how innovation is changing your firm’s capabilities and market position.
Conclusion

In today’s accounting landscape, innovation isn’t optional—it’s a survival requirement. Firms that create systematic approaches to identifying client needs and testing new solutions, services and technologies will have a true advantage in an increasingly competitive market.