iRobot, renowned for its Roomba vacuum cleaners, has filed for bankruptcy protection and announced plans to go private after being acquired by Picea Robotics, its main manufacturer.
The company, which had expressed concerns about its viability in March, has now filed for Chapter 11 bankruptcy protection in Delaware as it faces rising competition from cheaper rivals and new U.S. tariffs.
Under the terms of the RSA, Picea will acquire 100% of the equity interests in iRobot and will enable iRobot to continue operating normally, pursue its product development plans, and maintain its global presence. This will strengthen iRobot’s financial position and help ensure continuity.
Gary Cohen, Chief Executive Officer, iRobot told investors, “Today’s announcement marks a pivotal milestone in securing iRobot’s long-term future. The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners. Together, we will work to continue advancing the industry-leading Roomba robots and smart home technologies that have defined the iRobot brand for more than three decades. By combining iRobot’s innovation, consumer-driven design, and R&D with Picea’s history of innovation, manufacturing, and technical expertise, we believe iRobot will be well equipped to shape the next era of smart home robotics.”
Moving forward, the company stated, “Together, we will work to continue advancing the industry-leading Roomba robots and smart home technologies that have defined the iRobot brand for more than three decades. By combining iRobot’s innovation, consumer-driven design, and R&D with Picea’s history of innovation, manufacturing, and technical expertise, we believe iRobot will be well equipped to shape the next era of smart home robotics.”
iRobot, valued at approximately $140 million, is based in Bedford, Massachusetts, and employs 274 people.
By CEO NA Editorial Staff
