Setback
iRobot filed for Chapter 11 bankruptcy in Delaware, in a deal to be taken over by China-based Picea. Shareholders were set to get nothing. iRobot blamed tariffs on imports from Vietnam, among other things.
A delay, pause or setback
What the source says
“economic forces plus tariffs on imports from Vietnam stymied that progress.”
What it means
iRobot (Roomba), from iRobot, is at stage 5 of 5 on our ladder: regulator-cleared or mass market. A setback stays on the record next to the milestones; the stage moves down only when the rules say so.
Human help: Our sources report it working without human help.
More on iRobot (Roomba)
- iRobot launched the Roomba Mini, its smallest Roomba, in the UK and Europe, after a February launch in Japan.
- Picea completed its takeover. iRobot left bankruptcy as a private company wholly owned by Picea and kept its headquarters in Bedford, Massachusetts.
- iRobot's CEO Gary Cohen told TechRadar that the Roomba app keeps working and warranties will be honoured after the takeover.
- iRobot warned there was substantial doubt it could stay in business, and its shares fell 35% in a day. It hired advisers to look at a sale or refinancing of its debt.
- Amazon dropped its plan to buy iRobot, first announced in 2022 at about $1.7 billion, after the European Commission opened a probe. The companies said there was no path to approval.
- The same day, iRobot said it would lay off 31% of its staff, about 350 people, and its chair and CEO Colin Angle stepped down. Amazon paid iRobot a $94 million break-up fee.