Little Things, a female-focused publishing firm, is set to close following changes to the social network's newsfeed, which it claims were "catastrophic" for its brand.
The company was first launched in 2014 and it subsequently attracted an impressive 12 million followers on Facebook, many of whom were drawn to its fusion of "feel-good news" and videos.
But since Facebook decided to make amendments to its newsfeed, the business has spiralled into a seemingly terminal decline, with chief executive Joe Spieser telling Business Insider that the algorithm changes had led to a fall of around 75 percent in Little Things' organic traffic.
Little Things has held talks with another firm about a potential buyout, but in a note to its staff, the company recently confirmed that the deal had collapsed.
The memo read: "The businesses looking to acquire Little Things got spooked and promptly exited the sale process, leaving us in jeopardy of our bank debt covenants and ultimately bringing an expedited end to our incredible story."
In a statement, Little Things admitted it faces an uncertain future.
The firm explained: "What happens to the Little Things brand, we all know and love, is uncertain at this point."
Meanwhile, Gretchen Tibbits, the president and chief operation officer of Little Things, said that "100 incredible people have been impacted" by what's happened to the company.