Major tech firm with 500 employees on brink of collapse | World | News
A technology company known for making robot vacuum cleaners is on the verge of collapse. The US-based company has made major cuts in recent years, including the termination of 105 positions in late 2024, but its remaining workforce of an estimated 500 now faces uncertainty. iRobot, which was founded in 1990 and rose to fame with its popular Roomba vacuum cleaner, is in talks with potential buyers but said potential takeover talks have come to a halt.
The company was rumored to be planning a $1.4bn (£1bn) takeover from Amazon last year, but it never came to fruition due to doubts over whether the deal would be approved by EU regulators. iRobot, based in Massachusetts, said in documents filed in the spring that it had “serious doubt” about whether it could continue operating without a buyer. In a recent update, the firm shared that the latest round of negotiations ended in failure because one bidder offered an amount that was “significantly less” than the stock price.
“While this review process remains active and ongoing, last week the last remaining counterparty in a potential sale transaction withdrew from the process following protracted private negotiations, and we are not currently engaged in advanced negotiations with any alternative counterparties for a potential sale or strategic transaction,” a representative said.
“Therefore, there remains no assurance that our review of strategic alternatives will result in any action or outcome.”
The filing also explained that the company’s financial situation “continues to decline” and reiterated that it “may not be able to provide the additional financing required to continue our operations.”
iRobot’s shares fell 30% this week after it admitted it had encountered obstacles in its search for a buyer.
Before becoming a household name with the Roomba, which was released in 2002 and sold more than 40 million units, iRobot was founded as a developer of military robots.
The machines were used in bomb disposal operations and especially in the search for survivors in the rubble of the World Trade Center after 9/11.
But things started to go south in 2023 as the company struggled to compete with cheaper Chinese models and make money from a relatively uniform product line, forcing it to take out a $200 million (£150 million) loan from a private equity firm.
