The US company behind the Roomba robot vacuum has filed for Chapter 11 bankruptcy protection and agreed to be taken over by a Chinese supplier, marking a dramatic fall for one of the pioneers of consumer robotics.
iRobot, listed in the US and founded in 1990, said it had reached a restructuring agreement with Picea Robotics, a subsidiary of its main manufacturing partner. The deal follows years of declining profits, supply chain disruption and mounting competition from cheaper rivals. The company warned earlier this month that bankruptcy was a real possibility.
Chief executive Gary Cohen said the takeover would stabilise iRobot’s finances and allow it to continue operating. He said combining iRobot’s design and research expertise with Picea’s manufacturing capabilities would position the company for the future of smart home robotics.
The move comes three years after Amazon’s proposed $1.4bn takeover of iRobot collapsed following opposition from EU competition regulators. Although iRobot received $94m in compensation, much of it went towards fees and debt repayments. Picea later acquired the remaining debt through its Hong Kong subsidiary.
iRobot’s sale to a Chinese firm may revive privacy concerns linked to Roomba’s home-mapping technology, which had already drawn scrutiny during Amazon’s failed bid. The company said the bankruptcy would not disrupt product support, supply chains or its app services.
Valued at more than $3bn during the pandemic boom in 2021, iRobot is now worth about $137m. Shares fell more than 13% following the announcement.
