Roombayer Maker Robot has filed for Chapter 11 bankruptcy in the state of Delaware, ending several years of financial woes for the US Robot Vacuum Company. Announced on Sunday, Irobot will now be acquired by Chinese Robotics Company Picea, which has been acting as its secure manufacturer and prime contractor.
Under the agreement, PICEA will develop Irobobot to continue operations, as well as develop products and maintain its global presence. Picea will also cancel a large multimillion dollar debt that Indobook owes. In the Exchange, PICEA will acquire full ownership of Irobot, which will be a private company that is no longer listed on the stock exchange.
Irobot can face bankruptcy. But as a vacuum tester, I saw the chamber’s era from the sun.
“Today’s announcement marks a very important milestone in securing Irobot’s long-term future,” CEO Gary Cohen said in a statement. “The transaction will strengthen our financial position and will help bring continuity to our consumers, customers and partners.”
Fortunately, this agreement with picea means that Irobot customers who already have bedrooms should not experience any interruption in the operation of the application, customer programs, or product support. Irobot also said it will continue to ‘operate as usual, including meeting its commitments to employees and making timely payments to vendors. “
Bright light speed
Unfortunately, the shares of Irobot’s stophoholders will not get such a good result. As a result of the Picea acquisition, all existing equity in Irobot will be wiped out. Irobot says its stockholders “will suffer a total loss and receive no recovery on their investment.”
Writing has been on the irobot wall for a while. Last January, dealing with the acquisition of $ 1.4 billion by Amazon fell due to antitrust concerns from the European Union. This prompted the struggling company to announce a major restructuring, slashing its spending on recruiting and eventually cutting more than half its workforce.
Still, it wasn’t enough to turn Irobot’s fortunes around. This year, Indobot said there was “significant doubt” it would be able to continue after the continuation of the financial results. The annual income is down and down from $ 890.6 million in 2023 to $ 681.8 million in 2024, a reduction of more than 23 percent.
The company had hoped that its 2025 product line would recoup its cash, which Cohen said at the time was the biggest product launch in Irobot’s history. ” Regrettably, this last last attempt failed to achieve the dynamic change that Irobot was hoping for. Talks with another potential buyer after that fell through in October, sending the stock already close to 33 percent and leaving the robot vacuum company with a few places to turn.
Founded in 1990, the Irobot room also started out as a robot vacuum. Those days are now long gone, and it will be an uphill battle if Irobot hopes to bring it back.
