American iRobot Corp., which revolutionized the world of robot vacuums in the early 2000s with its Roomba model, has filed for bankruptcy and proposed to transfer control to its main Chinese supplier.
As the company reported, iRobot will be acquired by Chinese Shenzhen PICEA Robotics Co. and its "subsidiary."
Ordinary shares of iRobot, founded in 1990 by engineers from the Massachusetts Institute of Technology, will be canceled in accordance with the restructuring plan proposed by the company as part of the bankruptcy proceedings.
IRobot achieved success with the Roomba model, introduced in 2002 and quickly becoming synonymous with autonomous vacuums. However, the company's profits, which sold over 40 million home robots, began to decline in the post-COVID years due to supply chain issues and the emergence of cheaper alternatives. Earlier this month, it warned of potential bankruptcy, American media reported.
In 2022, Amazon.com Inc. made an offer to acquire iRobot for $1.7 billion, but the deal fell through due to the European Union's antitrust authority not approving the transaction.
Last month, Santrum Hong Kong Co., a subsidiary of Shenzhen PICEA, acquired $191 million in outstanding debt from iRobot from an American investment firm. Since then, the Chinese company has been negotiating with iRobot to raise new capital and repay the debt.
The bankruptcy plan will allow iRobot to remain an operating company and continue to meet its obligations to employees, as well as to timely and fully pay suppliers and other creditors the amounts owed throughout the court-controlled process, the company stated.
iRobot's market capitalization has collapsed by 44% since the beginning of 2025.
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