"Following issuing warnings earlier this year that it was fast running out of options, iRobot announced it will enter Chapter 11 protection and plans to be acquired by its contract manufacturer, the Chinese-based Picea Robotic. The company says it will continue to operate "with no anticipated disruption to its app functionality, customer programs, global partners, supply chain relationships, or ongoing product support." This should mean that, at least for now, your Roomba will continue cleaning your floors just as it did before."
"Two decades later, while iRobot is the Kleenex of the robot vacuum space, its market share had eroded significantly to companies like Ecovacs and Roborock. An acquisition by Amazon looked set to reverse the company's declining fortunes, but the deal fell apart under regulatory scrutiny. Since then, iRobot has reinvented its product line and cut prices to better compete with rivals, working with Picea Robotics to develop new Roombas."
iRobot filed for Chapter 11 bankruptcy protection and will be acquired by its contract manufacturer, Picea Robotics. Operations, app functionality, customer programs, global partners, supply chain relationships, and ongoing product support are expected to continue without disruption. iRobot was founded in 1990 and introduced the Roomba in 2002, becoming an early household-robotics pioneer. Market share declined as competitors like Ecovacs and Roborock gained ground, and a proposed Amazon acquisition collapsed under regulatory scrutiny. The company redesigned products, cut prices, and worked with Picea, but revenue fell and US tariffs, notably a 46 percent levy in Vietnam, harmed margins. CEO Gary Cohen described the transaction as pivotal to strengthening the company’s financial position and delivering continuity for consumers and partners.
Read at The Verge
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