"iRobot, the company that makes the Roomba, filed for bankruptcy protection Sunday night and announced that it will be acquired by its main manufacturer and lender, China-based Picea Robotics. Don't panic: iRobot said the restructuring won't affect its existing products or customer service. Worst case, if Picea-which also sells robot vacuums and makes them for other companies-ultimately decides to strip iRobot for parts, your Roomba should still work, just without an app or cloud connectivity, the Verge reported last month when iRobot forewarned of bankruptcy."
"iRobot still controls 42% of the US robo-vacuum market, but cheaper Chinese alternatives and post-pandemic supply chain issues have caused its earnings to decline since 2021. In 2022, a $1.7 billion acquisition deal by Amazon came to the rescue, but antitrust concerns from European regulators tanked the deal in 2024. iRobot's then-CEO stepped down, its stock plummeted, it laid off 31% of employees, and it fell behind on payments to Picea."
iRobot filed for bankruptcy and will be acquired by its main manufacturer and lender, China-based Picea Robotics, which will assume control and cancel large portions of debt. iRobot assured customers that existing products and customer service will not be affected, though Picea could disable app or cloud features if it strips the company for parts. iRobot's market value plunged from $3.56 billion in 2021 to about $140 million. The company still controls 42% of the US robo-vacuum market but has faced competition from cheaper Chinese rivals, supply-chain problems, a blocked Amazon acquisition, leadership changes, layoffs, and tariff costs on Vietnam-made units.
Read at Fortune
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