The US company behind the Roomba robot vacuum cleaner has filed for Chapter 11 bankruptcy protection and agreed to be taken over by a Chinese supplier, Picea Robotics.
iRobot, which pioneered consumer robot vacuums in the early 2000s, said the restructuring deal would see it acquired by a Picea subsidiary. The company has struggled in recent years amid supply chain disruption and growing competition from cheaper rivals, warning earlier this month that bankruptcy was a risk.
Chief executive Gary Cohen said the takeover would strengthen iRobot’s finances by combining its design and research expertise with Picea’s manufacturing capabilities. The bankruptcy process is expected to allow the company to continue operating, paying staff and suppliers, and supporting its products and app.
The deal follows the collapse of Amazon’s $1.4bn bid for iRobot in 2024 after opposition from EU competition regulators. Once valued at more than $3bn during the pandemic boom, iRobot is now worth about $137m after posting a $145.5m loss last year.
