Is the Color horror story reaching its conclusion?

A source within the company tells us that the company’s shareholders and board last week voted to shut the company down.

Here’s some of the email sent to employees.

 I hope is all well with you.  As you may or may not have heard, Color is going through a number of changes.  Last week, the Board and major shareholders voted to wind down the company.

We ask that you politely cancel any existing commitments stating we are closing our [redacted] program.

Built on a photo-sharing app, Color became a notorious example of the freewheeling nature of Silicon Valley funding and hype when the company raised $40 million last year. The problem? No one actually used the service, which only has 440,000 monthly active users, according to AppData.

Today’s news, of course, might have been expected after co-founder and CEO Bill Nguyen stepped down from his day-to-day duties last month. As TechCrunch then reported,  the Color product was due for a max of two revisions before the company planned to try something else out. It looks like shutting things down was that “something else.”

We’ve reached out to Color for comment but haven’t yet received a response.