The company behind the Roomba automatic vacuum cleaner is filing for bankruptcy and will be taken private for restructuring.
iRobot said it was under Chapter 11 protection but did not anticipate any disruptions to its operations or services as it starts the restructuring process.
After a sale to Amazon collapsed last year over regulatory concerns from the U.S. and European Union, iRobot said Shenzhen PICEA Robotics Co., Ltd., its primary contract manufacturer, is acquiring the company.
Picea has built and sold more than 20 million robotic vacuum at its facilities in China and Vietnam.
“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.
In its bankruptcy filing, the company said it owes U.S. Customs and Border Protection $3.4 million in unpaid tariffs. iRobot also owes nearly $100 million to Picea.
iRobot was founded in 1990 and the Roomba was introduced in 2002. However, in recent years, the company has lost is foothold in the robotic vacuum market as competitors have developed cheaper, higher performing options.
News of the upcoming, new private ownership sent iRobot stock tumbling to about $1.18 a share on Monday after closing at $4.32 per share on Friday. The freefall is likely to continue.
If the bankruptcy plan is approved by the courts, the company said holders of iRobot common stock “will experience a total loss and not receive recovery on their investment.”
