iRobot, the maker of the Roomba vacuum, has filed for Chapter 11 bankruptcy protection, but the company says it will keep its devices and services running without interruption as it is taken private in a restructuring deal.
Chapter 11 Filing and Restructuring
The 30‑plus‑year‑old robotic‑vacuum pioneer announced its bankruptcy filing on Monday. iRobot’s board cited intensified competition, layoffs, and a declining stock price as key factors that led to the decision. The company’s CEO, Gary Cohen, stated that the prepackaged Chapter 11 process should finish by February and that the company will continue to operate normally during the proceedings.
Amazon’s Attempted Acquisition
In 2022, Amazon agreed to buy iRobot for about $1.7 billion. The transaction was later called off after the European Union signaled objections, with Amazon blaming “undue and disproportionate regulatory hurdles.” On Friday, Amazon announced it had signed an agreement to purchase iRobot in an all‑cash deal valued at roughly $1.7 billion, including iRobot’s net debt. Amazon also committed to pay a previously agreed termination fee of $94 million.
Picea Acquisition and Manufacturing Background
On Sunday, iRobot revealed that it is now being acquired by Picea through a court‑supervised process. Picea, formally known as Shenzhen PICEA Robotics Co., Ltd., is iRobot’s primary contract manufacturer. The company operates facilities in China and Vietnam and has built and sold more than 20 million robotic vacuum cleaners worldwide.
CEO Statement on the Transaction
“The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners,” CEO Gary Cohen said in a statement. The comment comes as iRobot prepares to transition ownership while maintaining its service commitments.
Operational Continuity During Bankruptcy
iRobot emphasized that the Chapter 11 process will not affect its app functionality, customer programs, global partners, supply‑chain relationships, or ongoing product support. The company assures that consumers will not experience any service disruptions as the restructuring unfolds.
Market Impact and Share Price Decline
In pre‑market trading, iRobot shares slid nearly 70 % to $1.31. The sharp drop reflects investor uncertainty surrounding the bankruptcy filing and the change in ownership structure.
Key Takeaways
- iRobot files for Chapter 11 but pledges no disruption to devices or services.
- Amazon’s $1.7 billion acquisition attempt was withdrawn; the company now sells to Picea.
- Shares fell almost 70 % in pre‑market trading, signaling market anxiety.
The bankruptcy filing marks a pivotal moment for iRobot, as it seeks to stabilize its finances while continuing to deliver products to consumers worldwide. The transition to Picea ownership aims to preserve operational continuity and maintain the company’s presence in the competitive robotic‑vacuum market.
