Jawbone, the consumer electronics company that pioneered Bluetooth cellphone headsets, wireless speakers, and fitness trackers, has begun liquidation proceedings as its co-founder and CEO Hosain Rahman moves onto a new project.
Rahman has reportedly started a new health-focused hardware and software services company called Jawbone Health Hub, according to The Information (subscription required), which first reported news of the liquidation. This new company will reportedly service Jawbone’s devices, The Information reported.
Jawbone has had a volatile ride in its 18 years of existence, raising hundreds of millions from Silicon Valley’s biggest firms, including Andreessen Horowitz, BlackRock, Khosla Ventures, Sequoia Capital, Kleiner Perkins, and Silver Lake Waterman. The company, which had amassed 450 employees and a valuation of $3 billion by early 2015, struggled to ship products on time and was outmaneuvered by rivals like Fitbit (FIT). It was further weakened as sales of the once-hot wrist-worn fitness trackers softened. Investors in Jawbone could lose millions as a result of the liquidation.
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Meanwhile, Jawbone’s lawsuit against Fitbit and five former employees in California state court over alleged theft of trade secrets, will be handled by Sherwood Capital, the same firm tasked with liquidating the company’s assets, according to The Information.