Kathrine Frich
The Massachusetts-based tech firm, which employs around 500 people, has warned investors of “substantial doubt” about its ability to stay afloat.
Once a pioneer in home robotics, iRobot, the company behind the iconic Roomba vacuum cleaner, is teetering on the edge of collapse after takeover negotiations fell apart.
Struggling to survive
Founded in 1990, iRobot made its name by creating the world’s first autonomous vacuum cleaner, which became a household sensation after its 2002 release. But the company’s fortunes have declined sharply in recent years.
After several rounds of layoffs, including 105 job cuts in late 2024, iRobot has been actively seeking buyers.
Negotiations have now stalled after a potential bidder withdrew, offering what the firm called a “significantly lower” price than the market value of its stock.
In its latest filing, iRobot said it is no longer in “advanced negotiations” with any potential buyer and cannot guarantee that its ongoing review of “strategic alternatives” will lead to a rescue deal.
Amazon deal collapses
The company’s troubles deepened after Amazon’s proposed $1.4 billion (£1 billion) acquisition fell apart last year.
The tech giant reportedly walked away amid concerns that European Union regulators would block the merger on competition grounds.
Without the cash injection that deal would have provided, iRobot has struggled to recover. Its financial position has continued to deteriorate, and shares plunged 30% this week following news that its latest sale talks had failed.
Executives warned that iRobot may be “unable to secure the additional funding needed to continue operations” unless a buyer emerges soon.
Competition and decline
Before becoming synonymous with smart home cleaning, iRobot built robots for military and disaster-response use, including search missions at Ground Zero after 9/11.
But the firm’s consumer pivot has faced mounting pressure from low-cost competitors.
Analysts say cheaper Chinese alternatives and a stagnant product range have eroded the company’s dominance.
By 2023, iRobot was forced to take a $200 million (£150 million) private equity loan to cover costs as sales slowed worldwide.
Despite selling over 40 million Roombas globally, the company’s innovation cycle has struggled to keep pace with rivals offering comparable technology at lower prices.
Future uncertain
With its workforce shrinking and talks of new ownership halted, iRobot’s future looks precarious.
Industry experts believe that without a rapid cash injection or a merger, one of the most recognizable names in home robotics could face bankruptcy within months.
As one of the first companies to bring autonomous machines into everyday homes, its potential fall would mark the end of a major chapter in consumer tech history.
This article is made and published by Kathrine Frich, who may have used AI in the preparation
