Jawbone is struggling to pay the bills. According to a recent report from Business Insider, the company has almost no inventory of its UP fitness trackers, and it has yet to pay many of its key contractors.
The news follows a report from The Information last month that suggested the company was being sued by Flextronics, a global manufacturer, for breach of contract.
According to the report, Jawbone abruptly cut off its dealings with customer service agency NexRep after Jawbone stopped making payments to the company. Not only that, but the company also sold off part of its Bluetooth speaker business, a business it was known for before it entered the fitness tracking market.
You can tell that Jawbone is running low on stock — the website shows all UP fitness trackers as sold out, as well as all of the accessories for the trackers. That’s despite the fact that Jawbone raised $165 million in funding earlier this year, which likely went to things like solving manufacturing issues. The Jawbone Facebook page is also full of complaints from customers saying that they can’t get in touch with customer service.
On top of money and inventory issues, many of the company’s key executives have left the company, including Travis Bogard, the ex head of product, who left for Uber, according to a report from The Verge.
It’s important to note that none of this necessarily means that Jawbone is going to die completely anytime soon. According to another recent report, Jawbone is working on a medical-grade sensor, which would be used in the medical field rather than for consumers. The company still intends to release that product, according to The Verge, but will sell it through third-parties rather than directly to consumers.
- Equifax agrees to pay $700 million settlement for its 2017 data breach
- The stand-alone Palm is now available, but you don’t really need it
- Game companies are working developers hard. The pay isn’t worth it
- Netflix paid $100M to keep Friends, but viewers may pay the highest price
- Lyft’s robo-taxis have made more than 50,000 rides in Las Vegas