iRobot and Luminar File for Bankruptcy Amid Industry Challenges

iRobot, the maker of the Roomba vacuum cleaner, has filed for Chapter 11 bankruptcy in Delaware, which will lead to its acquisition by Shenzhen-based Picea Robotics, its primary supplier. According to Ars Technica, the deal comes after iRobot's shares dropped significantly following a failed $1.5 billion acquisition by Amazon due to competition concerns from EU regulators.

Gary Cohen, iRobot's CEO, stated that this transaction aims to strengthen the company's financial position and ensure continuity for its customers and partners. Meanwhile, lidar manufacturer Luminar has also filed for Chapter 11 bankruptcy in Texas after losing a key contract with Volvo.

Slashdot reports that Luminar plans to sell its assets, including its lidar and semiconductor businesses. Luminar is currently seeking to continue operations during its bankruptcy proceedings to maintain service delivery.

The company, which was once valued at nearly $3 billion, listed assets between $100 million and $500 million and liabilities between $500 million and $1 billion. Luminar's CEO, Paul Ricci, emphasized the importance of continuing quality service despite the circumstances.

This dual bankruptcy highlights the challenges faced by the robotics and autonomous vehicle sectors, indicating a potential downturn in these industries.