The US company behind the Roomba robot vacuum has filed for Chapter 11 bankruptcy protection and agreed to be taken over by one of its Chinese suppliers, Picea Robotics.
iRobot, which pioneered consumer robot vacuums in the early 2000s, said the restructuring deal would see it acquired by a Picea subsidiary while continuing to operate as a going concern. The company has struggled in recent years with supply chain disruptions, rising competition from cheaper rivals and falling demand after the pandemic boom.
Chief executive Gary Cohen said the takeover would strengthen iRobot’s finances by combining its product design and research capabilities with Picea’s manufacturing and technical expertise.
The move comes three years after Amazon’s proposed $1.4bn takeover of iRobot collapsed following objections from EU competition regulators. Although iRobot received compensation, much of it was used to cover fees and repay debt, which Picea later acquired.
The Chinese takeover may revive privacy concerns, as previous critics warned that ownership of iRobot could grant access to detailed floor plans generated by its app-controlled devices. iRobot said the bankruptcy process would not disrupt its products, app or customer support.
Founded in 1990 by MIT roboticists, iRobot was valued at more than $3bn in 2021 but is now worth about $137m after posting a $145.5m loss last year. Its shares fell sharply following the announcement.
