The US robot vacuum manufacturer iRobot has filed for Chapter 11 bankruptcy protection and agreed to be taken over by a subsidiary of its Chinese supplier, Picea Robotics.
Best known for launching the Roomba in the early 2000s, the US-listed company has struggled in recent years amid supply chain disruptions, falling demand after the pandemic and competition from cheaper rivals. Earlier this month, iRobot warned it could face bankruptcy.
Under the restructuring deal, Picea will acquire the company, which iRobot said would strengthen its finances and allow it to continue operating. Chief executive Gary Cohen said the combination of iRobot’s design and research expertise with Picea’s manufacturing capabilities would position the company for the future of smart home robotics.
The takeover comes three years after Amazon’s planned $1.4bn purchase of iRobot collapsed following opposition from EU competition regulators. Although iRobot received $94m in compensation, much of it was used to cover fees and repay debt.
The deal may revive privacy concerns, as Roomba devices collect detailed maps of users’ homes. iRobot said the bankruptcy would not disrupt its app, product support or supply chains.
Founded in 1990 by MIT roboticists, iRobot reported a net loss of $145.5m last year. Once valued at more than $3bn in 2021, the company is now worth about $137m, with shares falling sharply following the announcement.
