Roomba’s parent company iRobot has filed for Chapter 11 bankruptcy amid recent financial struggles and is now being acquired by Picea through a court-supervised process, the company announced on Sunday (December 14) in a statement obtained by ABC News.
Picea has served as iRobot’s primary contract manufacturer, building and selling more than 20 million robotic vacuum cleaners for the company.
“The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners,” iRobot CEO Gary Cohen said in the statement.
The company said it plans to continue normal operations during its Chapter 11 process without any expected disruption to app functionality, customer programs, global partners, supply chain relationships or ongoing product support. IRobot was the first and arguably most well known robotic vacuum company, but has struggled in recent years, with Amazon having initially agreed to purchase the company for about $1.7 billion in 2022 before the deal was called off in 2024 over “undue and disproportionate regulatory hurdles” after the European Union voiced its objection to the deal.
Amazon said it was willing to pay a previously agreed termination fee and would assist iRobot in its restructuring in an effort to stabilize the company. iRobot projects to complete its bankruptcy process by February 2026.
Recent Comments