Financial troubles and lack of inventory spell trouble for Jawbone

Enlarge (credit: Jawbone)

It has been nearly a year since Jawbone’s most advanced tracker, the Up4, hit shelves, and the company doesn’t seem to be doing well. According to a Business Insider report, Jawbone didn’t pay its customer service partner NexRep, and Jawbone cut ties with the company shortly after.

The report cites an e-mail from a NexRep executive that says Jawbone is “struggling financially” and couldn’t pay for the company’s services. The abrupt termination affected 93 NexRep jobs, leading to some layoffs and others being reassigned to other clients. Jawbone cites “restructuring” of its customer service for the partnership change.

In addition to its financial issues, Jawbone’s website is curiously out of most of its inventory. All of its fitness trackers, including the Up4, are listed as “sold out” and are unavailable for purchase. Another source familiar with the NexRep-Jawbone relationship claims in the report that Jawbone shipments have slowed in the past few weeks and have nearly come to a halt. Because of this, NexRep employees assigned to Jawbone couldn’t fill replacement orders that came in from complaining customers.

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Source: Ars Technica – Financial troubles and lack of inventory spell trouble for Jawbone