Colin Angle, co-founder and CEO of iRobot Corp., speaks during a Prime Air delivery drone reveal event in Las Vegas, June 5, 2019.
Joe Buglewicz | Bloomberg | Getty Images
Colin Angle, co-founder and former CEO of iRobot, on Monday said the company’s move to declare bankruptcy was “profoundly disappointing” and “nothing short of a tragedy for consumers.”
The robotic vacuum pioneer announced Sunday that it filed for bankruptcy and will be taken private by Shenzhen Picea Robotics, a lender and key supplier, following years of financial struggles.
“Today’s outcome is profoundly disappointing — and it was avoidable,” Angle told CNBC in a statement. “This is nothing short of a tragedy for consumers, the robotics industry and America’s innovation economy.”
In a Sunday court filing, iRobot said it had between $100 million and $500 million of assets and liabilities. The company said it owes almost $100 million to its new owner Picea, more than $5.8 million to GXO Logistics and roughly $3.4 million to U.S. Customs and Border Protection for unpaid tariffs, among other liabilities.
Shares of iRobot plunged more than 72% on Monday.
Founded in 1990 by Angle and two other researchers at the Massachusetts Institute of Technology, iRobot got its start making military and defense tech for the government before launching its flagship Roomba product in 2002 that cemented it as an early leader in the robotic vacuum cleaner market.
The company’s future has remained uncertain after Amazon abandoned its planned $1.7 billion acquisition of the company in January 2024, citing regulatory scrutiny from the European Union and the U.S. Federal Trade Commission. Afterward, iRobot laid off 31% of staff and Angle announced he would step down as CEO and board chair.
Amazon CEO Andy Jassy called regulators’ efforts to block the deal a “sad story” and said it would’ve given iRobot a competitive boost against rivals.
The Amazon acquisition was “the most viable path” for iRobot to compete globally, Angle said Monday. He added that iRobot’s bankruptcy serves as a “warning” for competition watchdogs.
Helen Greiner, one of iRobot’s co-founders, said in a Monday LinkedIn post that the company’s restructuring plan under a Chinese owner isn’t good for “consumers, employees, stockholders, Massachusetts or the USA.”
The company had been facing growing competition from cheaper, rapidly growing rivals, such as China-based Anker, Ecovacs and Roborock. Supply chain constraints in recent years added further strain to iRobot’s business, as it struggled to navigate shipping and inventory delays, which dented its revenue.
Its financial outlook darkened significantly after the Amazon deal fell apart, and in October, iRobot said it would be forced to seek bankruptcy protection if it failed to secure more capital or find a buyer.
Gary Cohen, iRobot CEO, said in a statement Monday that the restructuring plan would help secure the company’s “long-term future.” The bankruptcy proceedings aren’t expected to disrupt its products’ functionality or customer support, iRobot said.
The company’s third-quarter sales came in at $145.8 million, down almost 25% from $193.4 million one year earlier, and iRobot has about $190 million in debt.
