iRobot Files for Bankrupcy With Operations to be Purchased by Picea Robotics

Late Sunday night, Roomba maker iRobot filed for bankruptcy protection. The company has announced that it is entering into a Restructuring Support Agreement (RSA) with operations being purchased by contract manufacturer Picea Robotics.

According to iRobot, operations will continue “with no anticipated disruption to its app functionality, customer programs, global partners, supply chain relationships, or ongoing product support.” So, users should not expect to see any interruptions in the use of their robot vacuums in the short term, at least. The purchase should help “enable iRobot to continue operating in the ordinary course.”

iRobot states that Picea Robotics will receive 100 percent of the equity interests, which will assist in the continuation of iRobot’s “product development roadmap.” Under the RSA, the purchase should provide iRobot “a path forward to enhance financial stability, reduce debt, and support continued innovation across iRobot’s leading portfolio of robotics and smart home devices.”

“Today’s announcement marks a pivotal milestone in securing iRobot’s long-term future,” said Gary Cohen, Chief Executive Officer at iRobot. “The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners.”

iRobot is a Massachusetts-based company. Founded in 1990, the company has built the Rooba robot vacuums, making them synonymous with automated vacuum appliances. However, over the years, Roomba has suffered from stiff competition against the likes of Roborock, Dreame, Dyson, and Narwal. At one point, iRobot looked to be acquired by Amazon for $1.4 billion. However, the deal ultimately fell through as the acquisition recieved scrutiny over antitrust concerns.

Reporting on the latest news, Reuters states that iRobot was hit dramatically hard by the US tariffs, putting the company into an unstable position. iRobot had to manage the 46 percent tariffs in Vietnam, where its products sold in the US are manufactured.