The US company behind the Roomba robot vacuum cleaner has filed for bankruptcy protection and agreed to be taken over by one of its Chinese suppliers, Picea Robotics.
iRobot said it had entered Chapter 11 proceedings in Delaware as part of a restructuring deal that will see the company acquired by a Picea subsidiary. The company has struggled in recent years with declining profits, supply chain disruption and growing competition from cheaper rivals, and warned earlier this month that bankruptcy was a possibility.
Chief executive Gary Cohen said the takeover would strengthen iRobot’s financial position by combining its design and research expertise with Picea’s manufacturing capabilities. The company will continue operating, paying staff and suppliers, and supporting products and its app during the process.
The deal follows the collapse of Amazon’s proposed $1.4bn takeover in 2023 after opposition from EU competition regulators. iRobot was once valued at more than $3bn during the pandemic but is now worth about $137m, having reported a $145.5m net loss last year.
