The US company behind the Roomba robot vacuum cleaner has filed for Chapter 11 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, said it would be acquired by Picea Robotics, a subsidiary of one of its main manufacturing partners. The US-listed firm filed for bankruptcy in Delaware as part of a restructuring deal designed to keep the business operating.
The company has struggled since the pandemic, hit by supply chain disruptions and growing competition from cheaper rivals. Earlier this month, iRobot warned it could face bankruptcy without new financing. Its chief executive, Gary Cohen, said the agreement with Picea would strengthen the company’s finances and support future innovation in smart home robotics.
The takeover follows the collapse of Amazon’s proposed $1.4bn acquisition of iRobot three years ago, which was blocked by EU competition regulators. Although iRobot received $94m in compensation, much of it was used to cover fees and repay debt.
The sale to a Chinese supplier may revive concerns over data privacy, as Roomba devices map users’ homes through app-controlled features. iRobot said the bankruptcy process would not disrupt product support, its app or supply chains.
Founded in 1990 by three MIT roboticists, iRobot was valued at more than $3bn in 2021 but is now worth about $137m. The company reported a net loss of $145.5m last year, and its shares fell more than 13% following the announcement.
