iRobot, the US company behind the Roomba robot vacuum cleaner, has filed for Chapter 11 bankruptcy protection and agreed to be acquired by one of its Chinese suppliers.
The US-listed firm said it had reached a restructuring deal with Picea Robotics, a subsidiary of its main manufacturing partner, which will take over the business. The bankruptcy filing was made in Delaware and is intended to allow iRobot to continue operating while stabilising its finances.
iRobot has struggled in recent years as profits fell following the pandemic boom, with supply chain disruptions and growing competition from cheaper robot vacuum brands squeezing margins. Earlier this month, the company warned it could face bankruptcy without new funding.
Chief executive Gary Cohen said the deal would strengthen iRobot’s financial position by combining its design and research capabilities with Picea’s manufacturing and technical expertise.
The takeover comes three years after Amazon abandoned a $1.4bn bid for iRobot following opposition from EU competition regulators. Although iRobot received $94m in compensation, much of it was used to cover fees and repay debt. Picea’s Hong Kong subsidiary later acquired the remaining debt.
The acquisition may revive privacy concerns, as previous attempts to buy iRobot raised fears about access to detailed home mapping data generated by Roomba devices.
iRobot said the bankruptcy process would not disrupt product support, its app, supply chains or employee commitments. Founded in 1990 by MIT roboticists, the company was valued at more than $3bn in 2021 but is now worth about $137m after reporting a $145.5m net loss last year.
