The manufacturer of Roomba vacuum cleaners, iRobot, declared bankruptcy in the US by filing for Chapter 11 and agreed to a restructuring that sees the acquisition by Shenzhen Picea Robotics, the main creditor and manufacturer, together with Santrum Hong Kong.
The company will no longer list on the stock exchange.
Gary Cohen, CEO of iRobot, said: “Today’s announcement marks a key milestone in securing iRobot’s long-term future.” The manager also said that the operation will strengthen the financial position and “guarantee continuity for its consumers, clients and partners”.
Under the agreement, the company will continue to operate with no expected interruptions for customers.
It should be noted that in the last 12 months the capitalization fell by around 50.6%, to 137,490 million dollars (126 billion euros approximately).
Competition from cheaper vacuum cleaners and US-imposed customs duties pressured results. In 2024, iRobot recorded losses of 145.5 million dollars (around 133 million euros) and revenues of 682 million dollars (625 million euros), a drop of 24% compared to the previous year, having then warned of “substantial doubts” about its viability.
The acquisition by Amazon, initially announced in 2022 for around 1,700 million dollars (1,560 million euros) — later adjusted to 1,400 million (1,285 million euros) — was canceled in 2024 for regulatory reasons, with Amazon proceeding with the payment of breakage compensation of around 94 million dollars (86 million).
After that business failed, iRobot launched a restructuring that included staff cuts of more than 50%. It currently employs around 540 workers.