The company is staring at liquidation. Although its founder and CEO was quick to change business to Jawbone Health Hub, that caters to the niche market of medical wearables, according to sources, that business too is struggling to take off.
According to sources familiar with the matter at hand, Jawbone, the company that was famed for its fitness trackers and Bluetooth speakers, is facing liquidation.
It has become the latest casualty in the promising wearables market.
Its CEO and founder, Hosain Rahman has now started a new company, Jawbone Health Hub, which specializes on creating medical hardware and software. The company has raised funds for the new venture, but the sources weren’t able to quantify the sum.
According to a source, despite the switch in businesses, Jawbone believes it is worth a pretty penny if its litigation with its peer Fitbit is of any indication.
Once valued at $3 billion, Jawbone has become the latest casualty in the wearable market to throw in the towel. Last year, smartwatch maker Pebble sold its assets to Fitbit in a fire sale. Fitbit’s own stock is trading at its 52 week low.
A spokesperson for Jawbone declined to comment.
According to sources familiar with the matter at hand, Jawbone stopped producing its fitness trackers last year and stopped selling them from September 2016.
The company sold its inventories to a third-party reseller at discounted prices to generate cash flow, said the sources.
Incidentally, Jawbone has had trouble with its creditors and was forced to cut ties with its external customer service agency, said the sources.
Jawbone is in the processing of shifting its revenue model to “clinical-grade” wearable devices that could measure and track variables, including blood pressure. Sources however reveal that the company is having trouble to get the device to work as designed.
It is unclear as to whether Jawbone Health Hub will continue work on the device although it will continue to service current Jawbone fitness trackers.
In January 2016, when the company raised $165 million in a funding round, the company had been valued at $1.5 billion.