Roomba maker iRobot files for bankruptcy protection; will be taken private under restructuring
By Michelle Chapman
FILE - A Roomba 980 vacuum cleaning robot is presented during a presentation in Tokyo, on Sept. 29, 2015. (AP Photo/Eugene Hoshiko, File)
Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process.
IRobot, which became well known for its robotic vacuums, has struggled of late, dealing with increased competition, layoffs and a declining stock price. In 2022 Amazon announced that it had agreed to buy iRobot for about $1.7 billion, but that deal was called off last year. Amazon blamed “undue and disproportionate regulatory hurdles” after the European Union signaled its objection to the transaction.
Amazon said at the time that it would pay iRobot a previously agreed termination fee of $94 million and iRobot said that it would undergo a restructuring to help stabilize the company.
iRobot said Sunday that it is now being acquired by Picea through a court-supervised process. Picea, or Shenzhen PICEA Robotics Co., Ltd., is iRobot’s primary contract manufacturer.. With facilities in China and Vietnam, Picea has built and sold more than 20 million robotic vacuum cleaners.
“The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners,” iRobot CEO Gary Cohen said in a statement.
iRobot said it will continue to operate as normal during the Chapter 11 process and doesn’t expect any disruption to its app functionality, customer programs, global partners, supply chain relationships, or ongoing product support.
The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.
In premarket trading, iRobot shares slid nearly 70% to $1.31.
Wealthfront’s CFO Alan Iberman talks the $2.05B IPO and the major moment for robo banking as the company bets on AI, automation, and “self-driving money."
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
