iRobot (IRBT) filed for Chapter 11 bankruptcy, ceding control to Picea Robotics amid mounting competition and tariff pressures. IRBT faces deteriorating profitability, $23M in tariff costs, and expects to complete restructuring by February 2026.
iRobot says that customer service and app functionality won't be disrupted despite the restructuring.
Roomba maker iRobot filed for Chapter 11 bankruptcy Sunday and will turn over its business to a pair of Chinese companies and go private, capping a years-long fall from grace.
iRobot said on Sunday that it has started a pre-packaged Chapter 11 bankruptcy process in the district of Delaware.
iRobot warned in a securities filing that its search for a buyer has hit a substantial roadblock after negotiations fell apart with its last remaining bidder. The Roomba maker's financial condition has darkened after Amazon abandoned its planned acquisition of the company in 2024.
iRobot, the firm behind the well-known Roomba vacuums, has issued a warning of “substantial doubt" about the future of the company.
IRBT's fourth-quarter 2024 revenues decline 44.1% on account of lower sales of solo and other products.
iRobot (IRBT -35.66%) stock has fallen 35% after the company issued a "going concern" warning, raising doubts about its ability to stay in business over the next year.
The loss-making company was once valued at $3.56 billion in 2021, driven by pandemic-fueled demand. It is now worth less than $200 million.
Shares of iRobot plunged more than 30% on Wednesday after the Roomba maker said there's "substantial doubt" about its ability to stay in business. The Roomba maker faces mounting debt and sputtering revenue growth, as well as heightened competition from robotic vacuum makers based in China.
IRBT's Roomba robots are designed to handle a variety of cleaning tasks to provide an efficient home-cleaning experience for customers.
Consumer robot company iRobot, maker of the Roomba robot vacuum, said in a Wednesday (March 12) earnings release that there is “substantial doubt” about its ability to continue as a going concern.