Jawbone Has Started Bankruptcy Liquidation Procedures

Once upon a time, wearable devices market It is considered to be another hot spot after smart phones, and many manufacturers are pouring in. But after a few years, people find that the market of wearable devices is extremely limited, and Pebble and other companies have gone bankrupt. According to the latest news from foreign media, the former SPORTS BRACELET giant Jawbone Has entered the bankruptcy liquidation process, the company has become another victim of the wearable device market. Before, Jawbone had passed in China. Electronic Commerce Platform for retail, but the price is high, sales are thin. According to the US authoritative technology news website The Information quoted people familiar with the matter, after long term financial pressure, Jawbone has launched bankruptcy liquidation procedures.

The notice sent to the creditors showed that in June 19th, the company started the bankruptcy liquidation process in accordance with the laws of the United States of America. The company hired Sherwood Partners, an external institution, to handle the liquidation process, in which creditors could lodge debt requirements within 180 days. The bankruptcy of American companies is divided into two categories: liquidation and bankruptcy reorganization. Jawbone will be liquidated directly, which means that the company will go to the end of life. It is reported that Jawbone co founder and CEO Hosain Rahman has registered a new company called Jawbone health center, which will undertake the health and hardware business of the original Jawbone company. According to sources, many of Jawbone's employees were transferred to the above health companies at the beginning of this year. It is said that the company will also provide follow-up services to some of the existing Jawbone devices. Before the US media reported that Jawbone decided to make a major transformation, it will not produce the consumer movement Bracelet in the future, and will mainly develop professional health care equipment for hospitals and other professional customers.

Once upon a time, Jawbone is a world-famous SPORTS BRACELET manufacturer, and one of the two big industry giants in the United States (another opponent is Fitbit). At the peak of the wearable device market, Jawbone was valued at $3 billion by venture capitalists. Its shareholders include famous Sequoia Capital, Anderson Horowitz, Khosla venture capital and so on. According to sources, BlackRock, a US financial institution, provided a $300 million loan to Jawbone in 2015, which became the only creditor to be guaranteed. They will get a stake in the new health company. It has been revealed that an investor who has nothing to do with the original Jawbone company has invested in the new company and obtained most of the shares. His status is unknown. In the global sports Bracelet market, Jawbone and Fitbit used to fight and kill, but Jawbone was defeated, and Fitbit later went on the market.

Later, a lawsuit about patent infringement occurred between the two companies. In the process of bankruptcy and liquidation, Sherwood will take over the lawsuit on behalf of Jawbone. Jawbone is going bankrupt and liquidation, which means that many family investment organizations will suffer heavy losses. Over the past 17 years, Jawbone has raised $900 million through equity and convertible bonds. According to the world clothing and shoe net, Jawbone has been in a serious financial crisis in the past year and a half. In August last year, Jawbone failed to pay $1 million to a supplier in a timely manner. Last year, BlackRock also reduced its holdings of Jawbone equity assets to almost no value.

Some media pointed out that the wearable device market has actually died, only to enable apple, Fitbit and a few companies to rely on niche products to survive. A large number of polls pointed out that many consumers after buying bracelet for a period of time, because of monotonous function to abandon the bracelet, there are studies have pointed out that the bracelet has not been able to improve the efficiency of exercise and weight loss. In the field of smart watches, consumers think that the product duplicated the function of smart phones and become a burden on another body. Before Motorola announced that it had stopped releasing the new smart watch. Previously, the US Pebble company, once a pioneer of smart watches, has suddenly died. Fitbit has acquired assets such as its operating system, and is preparing to develop a new smart watch. Needless to say, wearable devices have become a "past style" bubble. In the future, there will still be a small number of users who are keen on sports, but they can not accommodate too many manufacturers. Apple, Fitbit, millet and other manufacturers will rely on brands and other advantages to dominate this small market.

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