US EditioniRobot Files Bankruptcy, Acquired by Picea
iRobot, maker of Roomba, filed for bankruptcy due to weak sales, rising competition, and debt; Picea Robotics will acquire the company and cancel over $260 million in debt.
- On Dec 14, iRobot filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware, with a restructuring support agreement transferring control to Shenzhen PICEA Robotics and Santrum Hong Kong.
- Since 2021, earnings fell amid supply-chain chaos and cheaper rivals, while a collapsed Amazon acquisition, a $200 million lifeline from The Carlyle Group, and debt sales to Shenzhen PICEA left iRobot cash-strapped.
- IRobot's third-quarter revenue was $145.8 million, and cash on September 27 totaled $24.8 million after a $5 million restricted cash withdrawal.
- Existing common shareholders will be wiped out as Shenzhen PICEA Robotics gains 100% equity, and iRobot said it will operate through the court-supervised reorganization process, meeting commitments to employees and vendors.
- Founded in 1990 by three MIT roboticists, iRobot sold more than 50 million robots and warns Roomba owners could lose app-based features amid ongoing uncertainties about suppliers and company survival.
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What is Roomba’s legacy after iRobot bankruptcy?
Roomba once looked like the future. Its maker, iRobot, filled American homes with small but affordable robots that helped keep households clean and cats endlessly occupied. But iRobot has now filed for bankruptcy, a victim of innovation and politics.iRobot’s bankruptcy filing came after it “struggled to keep up with foreign rivals” and failed to withstand the “new costs of tariffs,” said NPR. Most new Roombas are manufactured in Vietnam, and the…
iRobot announces insolvency: Chinese manufacturer Picea takes over 100 percent of the shares, while the previous shareholders go out empty – what does the EU have to do with it?
iRobot co-founder says FTC's opposition to Amazon deal was 'wrong-minded' following bankruptcy filing
iRobot, the maker of the Roomba vacuum cleaner, filed for bankruptcy protection on Sunday and is pursuing a buyout from its primary manufacturer in China after the company's acquisition by Amazon was blocked over a year ago on antitrust grounds.iRobot first raised concerns about its ability to remain in business in March and filed for Chapter 11 bankruptcy protection in a Delaware bankruptcy court on Sunday as it faces competition from lower-pri…
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