iRobot, the creator of the popular Roomba vacuum, has declared Chapter 11 bankruptcy. The company has reached an agreement to sell to Shenzhen PICEA Robotics, a Chinese contract manufacturer. This significant move marks a pivotal moment in the history of the company, which has been a leader in robotic technology since its inception. Founded in 1990 by roboticists from MIT, iRobot made groundbreaking advancements in consumer robotics.
Details of the Bankruptcy and Sale
The bankruptcy filing occurred on a Sunday, highlighting ongoing struggles within the company. iRobot announced that the sale to Shenzhen PICEA will not disrupt services. Customers can expect continuity in app functionality, customer service, and supply chain operations.
Company Background and Product History
iRobot is well-known for debuting the Roomba in 2002. This device was marketed as the first robotic vacuum cleaner designed for household use. The company rapidly expanded its market presence, going public in 2005. At its peak, the stock price surpassed $125.
Recent Financial Struggles
- Shares of iRobot plummeted to $1.20, reflecting a 72% drop.
- In 2022, Amazon attempted to acquire iRobot for $1.7 billion, but the deal was halted by EU regulations.
- Amazon incurred a termination fee of $94 million due to the collapsed acquisition.
As consumer spending declined, iRobot faced increasing pressure on sales. The company acknowledged potential operational shutdowns or bankruptcy, leading to this recent filing.
Looking Ahead
Despite the challenges, iRobot reassured stakeholders that it would maintain everyday operations seamlessly under the new ownership. The transition to PICEA aims to support ongoing consumer programs and product support systems.
iRobot’s situation reflects broader trends in the consumer technology sector, where companies must adapt to evolving market forces.
