On December 15, according to Reuters, on Sunday local time, iRobot, the originator of sweeping robots, announced that the company had filed for bankruptcy protection and would be acquired by its main manufacturer, Shenzhen Shanchuan Robot Company, thus achieving privatization. iRobot was previously listed on Nasdaq.
iRobot files for bankruptcy protection
iRobot filed for bankruptcy in the U.S. District Court for the District of Delaware this time in response to macroeconomic and tariff-related uncertainties. In March this year, iRobot expressed concerns about its ability to continue operating.
iRobot's sweeping robot Roomba was once popular, but it has faced challenges from Chinese competitors such as Ecovacs Robots. These rivals offer advanced features at a lower price.
iRobot said the company will continue to operate and its application functionality, customer projects, global partners, supply chain relationships and existing product support services are not expected to be affected.
The company was previously the target of a $1.4 billion acquisition deal by Amazon. According to court documents, iRobot currently estimates its assets and liabilities to be between US$100 million and US$500 million, and the number of creditors is approximately 50,001 to 100,000.
iRobot is currently operating at a loss. Its market value reached a peak of US$3.56 billion in 2021 due to the market demand generated by the epidemic. However, according to data compiled by the London Stock Exchange Group, its market value has shrunk to approximately US$140 million.