iRobot Files for Bankruptcy After 35 Years of Innovation

iRobot, the maker of the Roomba, has filed for bankruptcy after 35 years of innovation. According to a report from Slashdot, the company has reached a restructuring support agreement that will transfer control to Shenzhen PICEA Robotics Co, its primary supplier and lender, alongside Santrum Hong Kong Company.

Under the terms of this restructuring, Shenzhen PICEA will obtain the entire equity stake in the reorganized company. iRobot aims to continue operations as a going concern, fulfilling obligations to employees and ensuring timely payments to vendors and creditors throughout the court-supervised process.

The company had previously warned of potential bankruptcy in December due to years of declining earnings, attributed to supply chain issues and increased competition. Although iRobot has sold over 50 million robots, its earnings have declined since 2021.

Additionally, a planned acquisition by Amazon in 2023 fell through due to regulatory concerns.