iRobot stock drops 30% after Roomba maker warns buyer search stalled

shares iRobot It tumbled more than 30 percent on Monday after the company warned that it had faced a significant hurdle in its search for a buyer and that its financial situation remained poor.

iRobot said the Roomba maker had been vying to sell it since March, but last week the only remaining potential buyer withdrew from the process after “lengthy private negotiations.” in a regulatory filing.

iRobot’s future remains uncertain Amazon It abandoned a planned $1.7 billion acquisition in January 2024, citing regulatory scrutiny.

Since then, iRobot has struggled to generate cash and pay its debts, and in March it warned that there were “serious doubts” about iRobot’s ability to stay in business.

Amazon CEO Andy Jassy called regulators’ efforts to block the deal a “sad story” and argued that it would allow iRobot to scale and compete against fast-growing rivals such as China-based Anker, Ecovacs and Roborock.

iRobot said Monday that the last remaining bidder offered a price per share that was “significantly lower” than the stock price in recent months. Shares of iRobot are down more than 50% this year.

“We are not currently in advanced discussions with any alternative counterparties for a potential sale or strategic transaction,” iRobot wrote in its filing. “Therefore, there remains no assurance that our review of strategic alternatives will result in any action or outcome.”

In July 2023, iRobot took out a $200 million loan from Carlyle Group to fund its operations as a temporary measure until the Amazon deal closes. iRobot said in its filing that it has extended the waiver of certain financial obligations through Dec. 1, the sixth amendment to the loan agreement.

The filing warns that if lenders fail to provide additional financing or secure other sources of capital in the near term, they “may be forced to significantly restrict or cease their operations and possibly be subject to bankruptcy protection.”