US EditioniRobot Files Bankruptcy, Acquired by Picea
iRobot's restructuring plan wipes out common stock and transfers ownership to supplier Shenzhen Picea Robotics, aiming to stabilize operations and reduce $190 million 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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262 Articles
The company iRobot, creator of Roomba vacuum robots, entered a bankruptcy process in the United States.This situation will not affect the operation or support of the devices, according to the company itself.The firm, based in Bedford, Massachusetts, initiated a voluntary bankruptcy process under the protection of Chapter 11 of the U.S. Bankruptcy Act.The objective was to facilitate its acquisition by the companies Shenzhen Picea Robotics and San…
The company revolutionized the robotic vacuum cleaner market with the Roomba back in the 2000s.
iRobot, the company that produces household cleaning robots such as the popular Roomba, throws in the towel and resorts to bankruptcy. (ANSA)
Did the Democrats kill Roomba?
Allow me to add an additional downer note to this grimmest of news days: iRobot, the company that manufactures Roombas, has declared bankruptcy. iRobot said it will continue to update and provide technical support for the devices, so there will be no “bricking.” They will continue to function, just like ghosts continue to haunt the homes in which they once lived. But there’s definitely a brick in the hearts today of the customers who’ve loved th…
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