Roomba maker iRobot files for bankruptcy, cedes control to supplier

iRobot has filed for Chapter 11 bankruptcy on December 14, turning control over to its primary supplier, Shenzhen Picea Robotics. According to the restructuring plan, Shenzhen Picea will acquire 100% of the reorganized entity, effectively rendering existing shareholders as having lost their investment. iRobot claims this process is essential for maintaining operations, fulfilling employee responsibilities, and fully compensating suppliers during this court-supervised procedure. This development follows years of declining earnings and mounting pressures from debt, prompting market observers to consider the long-term implications for both iRobot and the broader tech landscape.