Bluesmart has closed its doors after failing to find a route forward following a ban on lithium batteries by a number of airlines.
The company was one of the original creators of hi-tech luggage for travelers, providing a suitcase with a range of features ranging from built-in scales, charging units, lock and compartments for different devices.
It also had a tracking device using 3G and GPS technology so that owners could locate their luggage.
Sadly for Bluesmart, airlines in the U.S. including Delta, Southwest, American Airlines and Alaska Airlines have introduced a ban on lithium battery-powered luggage, meaning that the device is rendered useless as carriers are worried about the potential for fire emergencies.
Other airlines including Virgin Australia and Qantas have also followed suit.
Subscribe to our newsletter below
Bluesmart had provided a battery removal guide for passengers but the damage was done and the company has decided to shut down due to a "irreversibly difficult financial and business situation".
In a statement, the company says: "After exploring all the possible options for pivoting and moving forward, the company was finally forced to wind down its operations and explore disposition options, unable to continue operating as an independent entity.
"This represents a very unfortunate outcome for everyone involved, and we are all very sorry for this unexpected turn of events. For five years, our team worked tirelessly to create great products and bring true innovation to travelers around of the world."
The brand's technology and intellectual property has been snapped up U.S.-based Travelpro, a fellow provider of luggage units, in a move to potentially "steward and bring forward our innovations".
Bluesmart - the world's first smart connected carry-on suitcase