iRobot Files for Bankruptcy: Picea Robotics to Take Over Amidst Industry Struggles

iRobot, once a trailblazer in the realm of robotic vacuum cleaners, has officially filed for bankruptcy in the United States. The Massachusetts-based company, well-known for its Roomba product line, is set to be acquired by Picea Robotics, a Chinese manufacturer that has previously produced devices on behalf of iRobot. This transition marks a significant shift in the company's fate as it seeks to navigate challenging market dynamics. In a recent communication, iRobot disclosed that under the bankruptcy plan, current shareholders will not receive any compensation, and Picea Robotics will secure absolute control, holding 100 percent of shares post-acquisition. iRobot aims to finalize bankruptcy proceedings by February. Once a leader in the robotic vacuum industry, iRobot has faced mounting challenges from increasing competition, particularly from cost-effective Chinese manufacturers that have disrupted the market. The company previously attempted to ally with Amazon in hopes of reviving its fortunes; however, a planned acquisition fell through in August 2022 after facing pushback from European competition regulators. The EU Commission flagged concerns that an Amazon takeover might limit competition on its sales platform, leading to the deal's collapse. In a further sign of its declining position, iRobot announced in October that the last interested buyer had withdrawn from negotiations, citing substantial owed payments to its primary contract manufacturer. With the acquisition by Picea Robotics, iRobot aims to reposition itself in an increasingly competitive landscape while shedding the weight of its past financial struggles. Related Sources: • Source 1 • Source 2