iRobot, the US company behind the Roomba robot vacuum cleaner, has filed for Chapter 11 bankruptcy protection and agreed to be acquired by one of its Chinese suppliers, Picea Robotics.
The US-listed firm said the restructuring deal will see it taken over by a Picea subsidiary, following years of financial pressure caused by supply chain disruptions and growing competition from cheaper rivals. Earlier this month, iRobot warned it could face bankruptcy.
Chief executive Gary Cohen said the agreement would strengthen the company’s finances and combine iRobot’s design and research capabilities with Picea’s manufacturing expertise, positioning the business for the next phase of smart home robotics.
The move comes three years after Amazon abandoned a $1.4bn takeover of iRobot following opposition from EU competition regulators. Although iRobot received $94m in compensation, much of it went on fees and debt repayment. Picea’s Hong Kong arm later acquired the remaining debt.
The takeover may revive concerns over data privacy, as Roomba devices map users’ homes through app-controlled features. iRobot said the bankruptcy process would not disrupt operations, employee pay, customer support or its app.
Founded in 1990 by MIT roboticists, iRobot was valued at more than $3bn during the pandemic but is now worth about $137m after posting a $145.5m net loss last year. Shares fell more than 13% following the announcement.
