Roomba's Maker Takes a New Turn

iRobot, the company behind the renowned Roomba vacuums, is undergoing significant transformations. They have filed for Chapter 11 bankruptcy protection to restructure and stay afloat. Rest assured, your Roomba will continue to function as usual, as the company assures that operations will proceed normally.

Challenges and Setbacks

iRobot has faced numerous hurdles recently:

• Increased competition
• Workforce reductions
• Declining stock price

Recall the $1.7 billion acquisition deal with Amazon that fell through last year. Amazon cited European Union regulations as the reason for the deal's collapse.

Acquisition by Picea

In a strategic move, Picea, iRobot's primary manufacturer based in China and Vietnam, has acquired the company. Picea has produced over 20 million robotic vacuums. CEO Gary Cohen expresses optimism, stating that this acquisition will strengthen iRobot and enable them to continue serving their customers effectively.

Market Reaction

Despite the strategic shift, iRobot's shares have taken a significant hit. In early trading, the stock plummeted nearly 70% to $1.31. While the company faces tough times, they hope that this restructuring will pave the way for a strong comeback.