iRobot, the company behind the Roomba robot vacuum, has filed for bankruptcy, a situation that had been anticipated by market analysts. The CEO, Gary Cohen, had cautioned investors that cash shortages could lead to bankruptcy unless a buyer was found. Following the collapse of the company’s last potential acquisition, bankruptcy was viewed as unavoidable. Nonetheless, Cohen expressed optimism, describing the bankruptcy as an opportunity to reposition iRobot for competitive success, potentially in more sustainable market areas.
Cohen joined the firm in early 2024, taking over from co-founder Colin Angle, who resigned amid a failed acquisition attempt by Amazon. In a recent interview, Cohen remarked that the bankruptcy could preserve jobs and sustain the company’s Boston headquarters. However, the transition to private status is not encouraging for existing shareholders or employees who have faced layoffs in recent years. Despite these challenges, Cohen reassured Roomba owners that operations would continue without interruption.
As part of the pre-packaged bankruptcy plan, iRobot is set to be acquired by Picea Robotics, its contract manufacturer and principal creditor. Cohen highlighted that collaboration with Picea has allowed iRobot to close its technology gap with competitors rapidly. The company has recently launched its largest line of robots yet, which includes innovations like advanced navigation and multifunctional features.
The initial product launch, while significant, has faced some criticism for not standing out against market competitors. Cohen admitted that some of the new technology was developed in partnership with Picea, emphasizing the need for speed in product development.
Looking ahead, Cohen believes that iRobot has the potential to expand beyond vacuum cleaners and hinted at future innovations. However, the company’s new direction comes with questions about its unique identity in an increasingly crowded marketplace.
Source: https://www.theverge.com/report/847340/irobot-bankruptcy-reset-interview-ceo-gary-cohen