"The company said that it would be wholly acquired by its main manufacturer and lender, vacuum cleaner maker Shenzhen PICEA. Picea has R&D and manufacturing facilities in China and Vietnam, per the release. The Picea deal would allow iRobot to continue operating, developing new products, make "timely payments to vendors and creditors," and meet its commitments to employees, the release said."
"The company wrote in its third-quarter earnings report that, as of September 27, its cash totaled $24.8 million, compared to $40.6 million as of June 28. iRobot said it had withdrawn $5 million in restricted cash on September 27, after which it had "no sources upon which it can draw for additional capital." Its third-quarter revenue, $145.8 million, was about a 25% drop compared to the same period the year before, with sales dropping 33% in the US."
"Roomba's parent company, iRobot, said it has filed for Chapter 11 bankruptcy. The vacuum cleaner manufacturer will be acquired by its main lender, Picea. The bankruptcy announcement comes after years of cash struggles and a failed acquisition by Amazon. The parent company of Roomba, which has sold millions of cleaning robots, filed for Chapter 11 bankruptcy on Sunday after 35 years of operation. In a Sunday press release, Massachusetts-based robotics company iRobot said it had filed for bankruptcy protection in the District of Delaware court."
iRobot filed for Chapter 11 bankruptcy in the District of Delaware after 35 years of operation. The company will be wholly acquired by its main manufacturer and lender, Shenzhen PICEA, which has R&D and manufacturing facilities in China and Vietnam. The Picea acquisition will allow iRobot to continue operating, develop products, make timely vendor and creditor payments, and meet employee commitments. iRobot's common stock will be removed from stock exchanges and the company will become private. The filing follows several quarters of weak sales, a cash crunch, a withdrawn potential buyer, and a failed acquisition attempt by Amazon.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]