The US company behind the Roomba robot vacuum cleaner has filed for bankruptcy protection and agreed to be taken over by one of its Chinese suppliers after years of financial pressure.
iRobot said it had filed for Chapter 11 bankruptcy in Delaware as part of a restructuring deal with Picea Robotics, a subsidiary of its main supplier. The US-listed company, founded in 1990 by three MIT roboticists, rose to prominence in the early 2000s with the launch of the Roomba.
Profits have declined since the pandemic, hit by supply chain disruption and growing competition from cheaper rivals. Earlier this month, iRobot warned it could face bankruptcy. Its chief executive, Gary Cohen, said the agreement with Picea would strengthen the company’s finances and help position it for the next phase of smart home robotics.
The takeover comes three years after Amazon abandoned a planned $1.4bn acquisition of iRobot following regulatory opposition in the EU. Although iRobot received compensation for the failed deal, much of it went on fees and debt repayment. Picea later acquired the remaining debt.
The sale may revive privacy concerns previously raised over access to household mapping data generated by Roomba devices. iRobot said the bankruptcy process would allow it to continue operating normally, with no disruption to products, apps or customer support.
Once valued at more than $3bn during the pandemic, iRobot is now worth about $137m after reporting a $145.5m net loss last year. Shares fell more than 13% following the announcement.
