Former iRobot CEO calls Roomba maker's bankruptcy 'a tragedy for consumers'

Colin Angle, the co-founder and former CEO of iRobot, expressed deep disappointment regarding the company's recent decision to file for bankruptcy, labeling it a significant loss for consumers. iRobot, known for its innovative Roomba robotic vacuum, announced its Chapter 11 filing on Sunday, revealing plans to be acquired by Shenzhen Picea Robotics, a major lender and supplier, amidst ongoing financial difficulties. "This outcome is profoundly disappointing — and it was avoidable," Angle stated in a CNBC interview. He characterized the situation as a tragedy not just for consumers but also for the robotics sector and the broader innovation landscape in America. According to the court documents filed by iRobot, the company has assets and liabilities estimated between $100 million and $500 million, including nearly $100 million owed to Picea Robotics, over $5.8 million to GXO Logistics, and approximately $3.4 million to U.S. Customs and Border Protection for unpaid tariffs. On the stock market, iRobot's shares plummeted by more than 72% on Monday, reflecting investor concerns over the company's viability. Founded in 1990 by Angle and two MIT researchers, iRobot initially focused on military and defense technologies before launching the Roomba in 2002, which propelled it to the forefront of the vacuum cleaner industry. The future of iRobot became increasingly precarious after Amazon withdrew from a proposed $1.7 billion acquisition in January 2024, citing regulatory challenges from the European Union and the U.S. Federal Trade Commission. Subsequently, the company laid off 31% of its workforce, and Angle announced his resignation as CEO and board chair. Amazon CEO Andy Jassy lamented the regulatory obstacles, describing them as a "sad story" that hindered a potential competitive advantage for iRobot. Angle warned that the current bankruptcy serves as a cautionary tale for competition regulators. In a LinkedIn post, co-founder Helen Greiner criticized the restructuring under a Chinese firm, arguing it does not bode well for consumers, employees, or the American economy. iRobot has been grappling with fierce competition from lower-priced rivals, particularly from Chinese companies like Anker, Ecovacs, and Roborock. Recent supply chain challenges have further complicated its operations, leading to shipping delays and revenue loss. Following the collapse of the Amazon deal, iRobot indicated it might seek bankruptcy protection if it could not secure additional funding or a buyer. Gary Cohen, iRobot's new CEO, noted that the restructuring aims to ensure the company’s long-term sustainability, and reassured customers that the bankruptcy process would not impact product performance or support services. In the latest quarter, iRobot reported sales of $145.8 million, a significant drop from $193.4 million the previous year, alongside a debt of approximately $190 million.