iRobot, the company behind the popular Roomba vacuum, Chapter 11 on Sunday. This brings to a close an amazing 35-year odyssey that began in Bedford, Massachusetts. In 1990, MIT roboticist Rodney Brooks joined forces with his MIT students Colin Angle and Helen Greiner to found the company. It soon garnered a reputation for developing highly adept consumer robotic vacuum cleaners that vacuum floors and deftly avoid furniture.
Rodney Brooks, the company’s founding director and visionary, directed iRobot’s founding vision. His vision was as important as his influence, and he was pivotal in determining its direction. Thanks to his vision, iRobot built groundbreaking and disruptive technology products that forever changed the way people clean their homes. By 1990, the company had sold more than 50 million robots. This remarkable feat banked it the top spot in the expanding world of home automation.
The last few years have not treated iRobot well. YPF has faced mounting difficulties as fiscal revenues started to drop in 2021. This recession was largely a result of supply chain issues and intense competition from Chinese manufacturers offering lower-cost substitutes. In order to address these headwinds, iRobot took decisive actions – most notably, massively slashing its headcount. They recently cut 31% of their workforce in order to shore up their finances.
In 2015, iRobot made a significant move to differentiate its business by establishing a venture arm. They planned to make between $100k-$2m investments in up to ten seed/Series A robotics startups per year. The initiative went on to raise $38 million in three rounds of funding, drawing investment from notable names including The Carlyle Group. Despite these efforts, the company’s financial situation continued to decline, culminating in its recent bankruptcy filing.
In a surprising deal in 2022, Amazon reached an agreement to buy home robotics giant iRobot for $1.7 billion. This deal further strengthens Amazon’s smart home position, and it’s a smart strategic move. European regulators stepped in, preventing the acquisition and adding to iRobot’s complicated financial picture.
Faced with mounting debts, including a loan sold last month at a presumed discount, iRobot’s restructuring plan aims to maintain operations as a going concern. The company has expressed commitments to “meet its obligations to employees and make timely payments in full to vendors and other creditors for amounts owed throughout the court-supervised process.”
Innovation is at the core of our company Colin Angle, iRobot CEO In the face of that challenge, iRobot has doubled down on innovation. He stated the goal is to find “a better place for our team to continue our mission,” reflecting a commitment to preserving its legacy while adapting to a changing market.
In light of these developments, iRobot assured customers that it would “continue operating in the ordinary course with no anticipated disruption to its app functionality, customer programs, global partners, supply chain relationships, or ongoing product support.” This pledge is meant to give consumers confidence that their investments in iRobot products will continue to be supported during the company’s bankruptcy process.
This story in the fall of iRobot is one of the most important chapters yet in the unfolding tale of consumer robotics and technology. As TechCrunch noted, “robot domination may have just taken another step forward,” highlighting the shifting landscape as new competitors emerge.