The US company behind the Roomba robot vacuum cleaner has filed for bankruptcy protection and agreed to be taken over by a Chinese supplier after years of declining profits.
iRobot, which pioneered consumer robot vacuums in the early 2000s, has entered Chapter 11 bankruptcy proceedings in Delaware as part of a restructuring deal with Picea Robotics, a subsidiary of one of its main manufacturing partners. The company said the takeover would allow it to continue operating while stabilising its finances.
The business has struggled since the pandemic, hit by supply chain disruption and growing competition from cheaper rivals. Earlier this month, iRobot warned it could face bankruptcy without fresh support. Its chief executive, Gary Cohen, said the deal would combine iRobot’s product design and research with Picea’s manufacturing expertise to support future growth.
The takeover comes three years after Amazon abandoned a $1.4bn bid for iRobot following opposition from EU competition regulators. Although iRobot received compensation after the deal collapsed, much of it was used to cover fees and repay debt, which Picea later acquired.
The acquisition may renew concerns about data privacy, as Roomba devices can map users’ homes through their app-controlled features. iRobot said the bankruptcy process would not disrupt its products, app, supply chains or support for customers.
Founded in 1990 by MIT roboticists, iRobot was valued at more than $3bn during the pandemic boom but is now worth about $137m. Its shares fell more than 13% following the announcement.
