iRobot, the US company behind the Roomba robot vacuum cleaner, has filed for Chapter 11 bankruptcy protection and agreed to be taken over by one of its Chinese suppliers.
The company said it will be acquired by a subsidiary of Picea Robotics, its main manufacturing partner, as part of a restructuring deal filed in Delaware. iRobot warned earlier this month that bankruptcy was a possibility after years of financial pressure.
Once valued at more than $3bn during the pandemic, iRobot has struggled with supply chain disruptions and growing competition from cheaper robot vacuum brands. Last year it reported a net loss of $145.5m and is now valued at about $137m.
Chief executive Gary Cohen said the deal would strengthen iRobot’s finances by combining its product design and research with Picea’s manufacturing expertise. The company said the bankruptcy process would allow it to continue operating normally, paying employees and suppliers, and supporting its products and app.
The takeover comes three years after Amazon’s $1.4bn bid for iRobot collapsed following objections from EU competition regulators. That deal had also raised privacy concerns over access to data generated by Roomba’s home-mapping technology.
iRobot shares fell more than 13% following the announcement and are down about 45% this year.
