iRobot said it will continue support through bankruptcy proceedings. Credit: Adobe Stock

 

The story of how a robot that conquered millions of living rooms was thrown into the dustbin of corporate history. iRobot, whose name has become a household name for a whole category of gadgets, has officially filed for bankruptcy to be absorbed by its own Chinese supplier. The irony of the situation is thicker than dust in a forgotten corner.

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Founded in 1990 by MIT graduates, iRobot did not start with household appliances, but with the creation of robots for space and defense. But the real fame came in 2002 with the debut of the Roomba. It wasn't just a vacuum cleaner — it was a symbol of the future that had arrived. The company has sold more than 40 million home robots, and its shares were worth more than $125 at the best of times. They didn't just create the market, they became its face. In 2021, in the wake of the pandemic boom, the company was valued at a staggering $3.56 billion. It seemed that this successful cleaner would last forever.

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But something went wrong. And the problem wasn't the trash, but the "brains." While iRobot has been improving its camera navigation system (vSLAM) for years, Chinese competitors like Roborock and Ecovacs have relied on lidars. The result? Their robots built a map of the room faster and worked more efficiently in the dark. And while the American pioneer was offering premium prices, Chinese brands were attacking the market with multifunctional docking stations that washed and dried the rags themselves. iRobot was several years late with this innovation.

Gary Cohen, CEO of iRobot, spoke in an official statement about the "turning point" and the strengthening of the financial situation. However, behind these corporate formulations, there was a simple truth: the company had lost the technology race. Revenues began to fall due to supply chain problems and aggressive competition from cheaper counterparts.

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A deal with Amazon could be a lifeline. In 2022, the tech giant agreed to buy iRobot for $1.7 billion. But European antitrust regulators, concerned about Amazon's rise and access to credit card data, blocked the merger. iRobot received compensation of $94 million, but this money was used to pay consultants and partially repay the loan. The last hope of being saved by "big brother" has evaporated.

The Chinese lender takes the keys: The final in Chapter 11 format

The ending turned out to be almost poetic. The main manufacturer of iRobot devices, the Chinese company Shenzhen Picea Robotics, first bought out the debts of the American company through its subsidiary. And now, through the procedure of the so-called "pre-packaged Chapter 11", he completely takes over the business. iRobot shares will be cancelled, and current investors will lose everything. The company's capitalization, once measured in billions, now stands at a measly $140 million.

Now the future of the Roomba brand is being decided in Shenzhen. Picea is not just a factory, it is a giant with 7,000 employees, which itself has sold more than 20 million robot vacuum cleaners. The irony is that now they get their hands not only on production, but also on the most recognizable brand in the industry. As some observers joke, we may soon see Roombas with a completely new set of features — or the legendary name will quietly sink into oblivion on the shelves of a global giant.

While some robots are changing hands in corporate transactions, others have yet to find their calling. In a world where automation is becoming the norm, it is possible that entire platforms for the "employment" of smart machines will soon appear, where it will be possible to find a suitable robot performer for a variety of tasks, from cleaning to logistics. Who knows, maybe the updated Roombas after the rebranding will have to create a digital resume on such services in order to prove their competitiveness in the new world.