The parent company of Roomba, which has sold millions of cleaning robots, filed for Chapter 11 bankruptcy on Sunday after 35 years of operation.
In a Sunday press release, Massachusetts-based robotics company iRobot said it had filed for bankruptcy protection in the District of Delaware court.
The company said that it would be wholly acquired by its main manufacturer and lender, vacuum cleaner maker Shenzhen PICEA. Picea has R&D and manufacturing facilities in China and Vietnam, per the release.
The Picea deal would allow iRobot to continue operating, developing new products, make “timely payments to vendors and creditors,” and meet its commitments to employees, the release said.
Under the deal, iRobot will be a private company owned by Picea, and its common stock will be wiped from stock exchanges.
iRobot was founded in 1990 by three roboticists from the Massachusetts Institute of Technology. The company introduced the Roomba, its iconic disc-shaped vacuuming robot, in 2002.
The bankruptcy deal follows several quarters of weak sales and a cash crunch. The company wrote in its third-quarter earnings report that, as of September 27, its cash totaled $24.8 million, compared to $40.6 million as of June 28.
iRobot said it had withdrawn $5 million in restricted cash on September 27, after which it had “no sources upon which it can draw for additional capital.”
Its third-quarter revenue, $145.8 million, was about a 25% drop compared to the same period the year before, with sales dropping 33% in the US.
Last month, the company warned that the last possible iRobot buyer had backed out of a deal, which left it likely to pursue bankruptcy.
iRobot went through a failed acquisition attempt by Amazon. In 2022, Amazon announced that it would buy iRobot for $1.7 billion, but pulled the deal in January 2024, citing regulatory hurdles in the US and Europe.
The collapse of the Amazon deal hit iRobot hard. On the same day as Amazon’s announcement, iRobot said it would lay off 31% of its staff, and its CEO, Colin Angle, would step down.
iRobot’s stock price has dropped more than 50% in the past year and more than 90% in the past five years.
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