"On Sunday, iRobot Corporation said it has filed for bankruptcy. The Massachusetts-based company is seeking Chapter 11 protection in the District of Delaware. As part of the process, iRobot has entered into a Restructuring Support Agreement (RSA) with the Chinese company that manufactures its Roomba vacuum cleaners and other products, Picea Robotics Co., Ltd. iRobot was founded in 1990 and was one of the most prominent American companies to popularize household robotics among consumers."
"But in the decades since, iRobot has faced heavy competition from other robotic vacuum companies, many of which have released cheaper, superior products in recent years. Still, iRobot enjoyed strong brand recognition and had a significant foothold in marketshare among robotic vacuums in both America and Japan. Starting in 2022, Amazon attempted to acquire the company, but that deal was ultimately abandoned due to regulatory concerns."
iRobot filed for Chapter 11 bankruptcy in the District of Delaware and entered a Restructuring Support Agreement with Picea Robotics, its primary manufacturer and largest debt holder. The company built the Roomba brand since 1990 and gained substantial market share in the U.S. and Japan, but faced growing competition from cheaper, improved robotic vacuums. A proposed Amazon acquisition in 2022 was abandoned due to regulatory concerns. Mounting debt, rising operational costs and tariffs contributed to financial strain. If court approval is granted, ownership likely will transfer to Picea Robotics, producing significant losses for common shareholders and uncertainty for consumers.
Read at Fast Company
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