Roomba maker iRobot files for bankruptcy protection; will be taken private under restructuring

Roomba shaper iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn't expect immoderate disruptions to devices arsenic the much than 30-year-old institution is taken backstage nether a restructuring process.

IRobot, which became good known for its robotic vacuums, has struggled of late, dealing with accrued competition, layoffs and a declining banal price. In 2022 Amazon announced that it had agreed to bargain iRobot for astir $1.7 billion, but that woody was called disconnected past year. Amazon blamed “undue and disproportionate regulatory hurdles” aft the European Union signaled its objection to the transaction.

Amazon said astatine the clip that it would wage iRobot a antecedently agreed termination interest of $94 cardinal and iRobot said that it would acquisition a restructuring to assistance stabilize the company.

iRobot said Sunday that it is present being acquired by Picea done a court-supervised process. Picea, oregon Shenzhen PICEA Robotics Co., Ltd., is iRobot's superior declaration manufacturer.. With facilities successful China and Vietnam, Picea has built and sold much than 20 cardinal robotic vacuum cleaners.

“The transaction volition fortify our fiscal presumption and volition assistance present continuity for our consumers, customers, and partners," iRobot CEO Gary Cohen said successful a statement.

iRobot said it volition proceed to run arsenic mean during the Chapter 11 process and doesn't expect immoderate disruption to its app functionality, lawsuit programs, planetary partners, proviso concatenation relationships, oregon ongoing merchandise support.

The Bedford, Massachusetts-based anticipates completing the prepackaged section 11 process by February.

In premarket trading, iRobot shares slid astir 70% to $1.31.