iRobot, the pioneering company behind the Roomba smart vacuum cleaner, has filed for bankruptcy protection in the United States as it struggles to navigate a challenging global market.
The filing, made under a pre-packaged Chapter 11 process, will see Shenzhen-based Picea Robotics—iRobot’s primary manufacturing partner—take over ownership of the company. This strategic move comes after iRobot faced mounting competition from Chinese brands and was hit hard by rising tariffs.
According to court documents filed Sunday, iRobot was forced to slash prices and ramp up investment in innovation to stay competitive. However, U.S. tariffs of 46% on imports from Vietnam—where most of its devices for the American market are produced—added $23 million to its costs this year alone.
Once valued at $3.56 billion during the pandemic-driven boom in home automation, iRobot’s market value has plummeted to around $140 million. The company’s shares dropped more than 13% on the Nasdaq last Friday.
Despite the financial turbulence, iRobot has assured customers that its mobile app, product support, and supply chains will continue to operate without disruption.
Founded in 1990 by three MIT Artificial Intelligence Lab alumni, iRobot initially focused on defense and space robotics before launching the Roomba in 2002. The Roomba quickly became a household name, capturing 42% of the U.S. and 65% of the Japanese robotic vacuum market.
A proposed $1.7 billion acquisition by Amazon was blocked last year by the European Union’s competition authority, further complicating iRobot’s path forward.
Tag Archives: iRobot
iRobot narrows its loss
IRobot reported a fiscal fourth-quarter net loss of $63.6 million, or $2.28 a share, compared with a net loss of $84.1 million, or $3.07 a share, in the same quarter a year ago. Adjusted earnings were a loss of $1.82 a share.
Revenue dropped to $307.5 million from $357.9 million in the year-ago quarter Shares of iRobot have plunged 71% over the past year, Last month, Amazon.com called off its planned acquisition of iRobot following opposition from the European Union. IRobot also said it would lay off 31% of its employees, or about 350 people, and that its chief executive, Colin Angle, had stepped down
Amazon-iRobot deal scrapped
Amazon is scrapping its planned takeover of vacuum maker iRobot following opposition from EU competition authorities.
The companies said in a joint statement that they were “disappointed” but there was no clear regulatory path for the purchase of the Roomba maker.
Amazon iRobot
Amazon’s takeover of vacuum cleaner maker iRobot is set to be blocked by the European Union’s competition watchdog,
It’s a blow to the tech giant, which was previously given the all-clear for the purchase by the UK government’s competition watchdog.
The Competition and Markets Authority (CMA) found that its place in the UK market was “modest” and that it already faced several significant rivals.
Amazon declined to comment.
The online giant moved to buy iRobot, maker of the Roomba cleaner, in August 2022 in a takeover deal set to cost $1.7bn (£1.4bn).
Amazon’s $1.7 billion deal to buy iRobot is running into objections
European Union regulators have sent a statement of objections to Amazon about the company’s proposed $1.7 billion acquisition of Roomba maker iRobot. In a press release, the European Commission says that it “has informed Amazon of its preliminary view that its proposed acquisition of iRobot may restrict competition in the market for robot vacuum cleaners
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Amazon can engage with the regulator to address its concerns. The EU has a February 14 deadline to reach a final decision.
Amazon said it would “continue to work through the process with the European Commission and focused on addressing its questions and any identified concerns”.
iRobot shares fell almost 20 per cent
IRobot launch
iRobot launch new products, they are introducing an expanded line-up of 2-in-1 robots as well as the latest version of our software – iRobot OS 7, with Dirt Detective technology and SmartScrub. With our flagship Roomba Combo j9+ and Roomba j9+, as well the recent introduction of the Roomba j5+ and Roomba i5+, we’ve embarked on our most ambitious product launch cadence in company history.
iRobot understands that customers need to trust a robot will deliver on the promise of automated cleaning. If a robot is continually getting stuck, losing its way, smearing carpeted surfaces with wet mop pads and so on, then a customer’s trust in that product breaks down. The new Roomba Combo j9+ and Roomba j9+ tackle competing product shortcomings head-on with superior engineering, iRobot OS intelligence and thoughtful digital experiences. They are designed so you can trust your robot will get the job done right.
Amazon-iRobot: the EU Antitrust
Amazon’s $1.7 billion acquisition of iRobot is subject to an antitrust investigation by the European Union. iRobot which first introduced its Roomba robot vacuum cleaner in 2002 is of interest to Amazon which is already on the market with its products and which could integrate iRobots with the popular Alexa voice assistant.
The British antitrust recently examined the agreement giving its go-ahead but the European Commission’s investigation risks further postponing the effects of the acquisition. The preliminary investigation will conclude in early July, the Antitrust could carry out a supplementary investigation and ask for another 4 months. Amazon announced the deal in August 2022
Amazon takeover of iRobot faces UK watchdog review
Amazon’s planned takeover of Roomba vacuum cleaner maker iRobot is being reviewed by the UK’s competition watchdog.
The Competition and Markets Authority (CMA) is looking at whether the deal could lead to “a substantial lessening of competition”.
Amazon is seeking to grow its operations for smart home appliances.
Both Amazon and iRobot have both said they are “working co-operatively” with regulators.
Amazon announced it was buying iRobot last year in a $1.7bn (£1.4bn) takeover deal.
Roomba models sell in the UK from £249, with some costing up to £899.Both Amazon and Massachusetts-based iRobot said they were “working co-operatively” with the relevant regulators over the merger.
Dreame
Consumer tech brand Dreame Technology moves into the Netherlands, Belgium, and Luxembourg, making its robotic vacuums available on local platforms
The Shanghai-based smart home appliances maker, Dreame Technology, with product lines that include robotic vacuum cleaners, wet-and-dry vacuums and personal care products, is enlarging its European footprint by moving into the Benelux region. The brand has already become popular in other parts of Europe, like in Germany where its L10s Ultra ranked 1st in the robotic vacuum category on Amazon Germany during Black Friday 2022.
Fuelled by its existing success on the continent, Dreame Technology has joined forces with local retailers Ochama, Bol, Art&Craft, and Robostofzuigers to offer its products through local retail platforms in these countries.Robotic vacuum cleaners
Through these partnerships, Dreame Technology is launching multiple collections, including two of its flagship products in the robotic vacuum category — the L10s Ultra and the D10 Plus.
The L10s Ultra combines popular robotic cleaning technologies, such as auto-emptying and automatic mop cleaning for fully automated cleaning and includes a powerful vacuuming capacity with 5,300Pa of suction, robust mopping with two rotary mops and mop self-cleaning. The D10 Plus offers up to 45 days of AI-powered automated vacuuming and cleaning with its high-capacity automatic emptying feature and powerful 4,000Pa suction and multi-surface brush.
To launch its presence in the Netherlands, Belgium, and Luxembourg, the smart appliances maker will be offering a number of special promotions and discounts of up to 13% through its local partners.
Established in 2017, Dreame Technology, is an innovative consumer product company focused on smart home appliances. In addition to its robotic vacuum cleaners, the firm also offers wet-and-dry vacuums and cordless vacuums, such as the H12 Pro and T30.
Amazon’s takeover bid on iRobot
Amazon has put $ 1.7 billion on the table to buy the entirety of the shares of iRobot, the American company known worldwide for the Roomba series of robot vacuum cleaners, as reported by the Wall Street Journal . Although the company is the reference brand in the sector, it has probably suffered from the growing competition due to the success of the category and in recent months it has lost profitability closing its balance sheets in deficit.
The stock, which was worth 68 dollars at the beginning of 2022, had dropped to around 35 in mid-July and then climbed back to 50 dollars per share. Amazon offering $ 61 in cash provides a premium of around 20%. The total investment envisaged by Amazon: 1.7 billion, is slightly higher than the 2021 turnover: 1.56 billion. Amazon is also committed to clearing the company’s debt.
The market does not seem to expect a further offer. Amazon is committed to building an ecosystem of home appliances to make Alexa the ‘smart home’ hub competing with Google.
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