Roomba maker iRobot warns it may go out of business, sending shares plunging

Company Overview - iRobot, the maker of Roomba vacuum cleaners, has raised concerns about its ability to continue operations due to macroeconomic and tariff-related uncertainties, leading to a significant drop in its stock price by over 35% [1] - The company was once valued at $3.56 billion in 2021 but is now worth less than $200 million [2] Financial Performance - iRobot reported a net loss of $77.1 million for the fourth quarter ended December 28, 2024, an increase from a loss of $63.6 million in the same period the previous year [2] - Revenue for the fourth quarter declined by 44% [2] - Cash reserves decreased to $134.3 million in 2024 from $185.1 million in 2023, while debt stood at $200.6 million as of December 28, 2024 [2] Competitive Landscape - The company is struggling to compete with Chinese rivals like Ecovacs Robotics, which provide advanced features at lower prices [3] Strategic Options - iRobot is exploring options such as a potential sale or debt refinancing [3][7] Historical Context - iRobot was previously a $1.4 billion buyout target for Amazon, but the deal was scrapped due to antitrust objections [4][5] - Following the collapse of the Amazon deal, founder Colin Angle stepped down as CEO, and Gary Cohen was appointed to lead recovery efforts [6]