The maker of the Roomba is running out of cash and options. After its failed Amazon deal, iRobot could face bankruptcy.

Core Viewpoint - iRobot, once a leader in the robotic vacuum market, is facing severe financial difficulties and is on the brink of bankruptcy due to failed acquisitions and increasing competition [1][2][3]. Financial Strain - iRobot has been under financial pressure, worsened by the collapse of Amazon's $1.4 billion acquisition plan in early 2024 [2]. - The company reported that its last potential buyer withdrew after exclusive negotiations, offering a price significantly lower than its recent stock trading price [2][3]. - iRobot warned that without new funding, it may have to significantly reduce or cease operations and could seek bankruptcy protection [3][16]. Product and Market Position - iRobot has sold over 50 million Roomba models since its launch, but competition has intensified from brands like Dreame, Roborock, and Ecovacs [8][13]. - The company launched a new fleet of Roomba vacuums and mops in March 2023, aiming to reinforce its market leadership [4][8]. - iRobot's annual revenue peaked at $1.56 billion in 2021 but has been declining since, with shares dropping about 65% year-to-date, currently priced at $2.70 [13][16]. Historical Context - Founded in 1990 by MIT roboticists, iRobot initially focused on military and space-related robots before achieving consumer success with the Roomba in 2002 [9][11]. - The company sold its defense and security business in 2016 for up to $45 million, shifting its focus entirely to consumer robotics [12]. Strategic Challenges - iRobot acknowledged increased competition in the robotic floorcare segment, leading to a loss of market share [14]. - The failed acquisition by Amazon, initially agreed upon at $61 per share, was a significant setback, resulting in layoffs of 350 employees, or about 31% of its workforce [14][15].