"iRobot Corp., the company that revolutionized robot vacuum cleaners in the early 2000s with its Roomba model, filed for bankruptcy and proposed handing over control to its main Chinese supplier. The Massachusetts-based consumer robot maker, which is currently listed, will be taken over by China's Shenzhen PICEA Robotics Co. and a subsidiary of the Chinese firm, according to a press release."
"The common stock of the company, founded in 1990 by engineers from the Massachusetts Institute of Technology, will be wiped out under the proposed Chapter 11 plan filed in Delaware on Sunday. iRobot enjoyed initial success with the Roomba that it debuted in 2002 and which quickly became synonymous with autonomous vacuum cleaners. But earnings at the firm, which has sold more than 40 million home robots, began to decline in the post-Covid era, hit by supply chain issues and cheaper competitors."
iRobot filed for Chapter 11 bankruptcy and proposed handing control to Shenzhen PICEA Robotics Co. and its subsidiary, which acquired substantial outstanding debt. The company's common stock will be wiped out under the proposed Delaware plan. Founded in 1990 by MIT engineers, the firm debuted the Roomba in 2002 and sold over 40 million home robots. Earnings declined in the post-Covid era due to supply-chain disruptions and cheaper competitors. A 2022 Amazon acquisition attempt collapsed after EU competition concerns; iRobot received over $90 million in compensation but used part to pay fees and repay a bridge loan. The restructuring plan aims to keep operations ongoing and meet employee and creditor obligations during Chapter 11.
Read at www.mercurynews.com
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