Two decades after it ignited a market for robot vacuums in homes, iRobot has filed for Chapter 11 bankruptcy protection. The company, best known for its Roomba robot vacuums, entered the filing late Sunday night after months of warning signs and financial pressure.
Under the proposed restructuring, iRobot will be acquired by its primary manufacturing partner, China-based Shenzhen Picea Robotics.
The company said it will continue to offer robots and smart home devices to consumers.
Massachusetts-based iRobot, which launched the first Roomba in 2002, was once synonymous with the category it helped invent. But years of mounting robot vacuum competition, particularly from Chinese brands like Ecovacs and Roborock, have eroded its market share.
An attempted lifeline came in the form of an Amazon acquisition in 2022, which promised to bolster iRobot's position in the smart home space. However, that deal was ultimately scuttled by regulators on both sides of the Atlantic, leaving iRobot to fend for itself amid fierce competition.
In response, iRobot revamped its product line and worked with Picea to bring newer models to market, while also slashing prices to stay competitive. Despite those efforts, the company continued to lose ground. US tariffs didn't help.
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What the iRobot bankruptcy means for you
The acquisition by Picea, a contract manufacturer that already builds many of iRobot's products, is intended to allow operations to continue without interruption.
"Today's announcement marks a pivotal milestone in securing iRobot's long-term future," Gary Cohen, iRobot's chief executive officer, said in a statement Sunday. "The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners."
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