Jawbone, the fitness tracker and speaker manufacturer that was at one point valued at $3bn (£2.3bn), is reportedly shutting down and liquidating its assets as the one-promising wearable industry continues to struggle with generating ongoing revenues.

According to The Information, which cites persons close to the company, CEO and co-founder Hosain Rahman has founded a new company called Jawbone Health Hub which will continue to make health-related hardware and provide software services, including continued support for Jawbone’s existing devices.

Many of Jawbone’s current employees have already been moved across to this new firm, and Jawbone has helped raise initial funding for this new venture, although it’s not clear how much. Jawbone has yet to offer an official comment on the rumours.

There have been signs of trouble surrounding Jawbone for a while now. The firm reportedly stopped producing new fitness trackers last year, and sold its remaining stock to third-party resellers at a reduced price in order to generate revenues.

The company also faced criticism from customers at the start of the year, with its social media accounts going quiet for over a month and consumers complaining about a lack of contact available with the company. During this period, the firm’s score on company review website TrustPilot dropped as low as 0.4 out of 10.

The wearables industry has struggled to maintain viability after the initial enthusiasm that was generated with the first wave of fitness trackers. Last year, one of the first smartwatch firms Pebble sold its assets to Fitbit after running into financial trouble, while Fitbit’s stock is currently trading at 52-week lows, and the company is facing litigation from Jawbone over proprietary technology.

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