CHARLOTTESVILLE, Va. (CBS19 NEWS) -- The decision to close the Charlottesville-based wedding planning website Borrowed and Blue came after the company's board learned one of the co-founders had misappropriated funds, according to an email sent by company management to staff.
The email, which CBS19 has read and which has been confirmed by multiple sources, explains that an audit led to the discovery of "significant personal charges" on a business credit card by a company co-founder.
Borrowed and Blue was co-founded by husband and wife team Adam and Christin Healey in 2011. The email says Adam, who served as the company's CEO, investigated the financial matter with another member of the company's management team.
Several sources, who spoke on condition of anonymity, confirmed Christin is the co-founder accused of misappropriating funds.
The email says that after board members reviewed the audit, they determined that Adam had shown poor judgment. The board made the decision to return funding to investors and close the company.
Staff members were laid off on Oct. 13.
Borrowed and Blue had raised more than $10 million in funding. It employed nearly 30 people and had offices in Charlottesville and Boulder, Colorado.
Neither Adam nor Christin responded to requests for comment.
News of the company's closure came as a surprise to local wedding vendors, who enjoyed the networking and exposure the site provided. It featured thousands of real weddings, with names and descriptions of the vendors used at each event.
Wedding photographer Adrienne Eichner said Borrowed and Blue was key in helping small wedding businesses grow.
"As we network with each other, then we can refer each other, and review each other and then promote each other," she said.
Florist Melissa Swan had also used Borrowed and Blue to promote her Staunton store Honey Bee's Florist.
"It was a great way for vendors to converge and meet and see each other's work," she said.
Eichner said similar wedding planning sites exist but don't support local vendors to the same degree.
"It really was a very important website," she said. "We all hope it recovers and becomes something else because it can't just disappear. We're going to miss it."