Roomba Maker iRobot Warns of Potential Shutdown After Amazon Acquisition Collapse, Launches New Lineup

iRobot Corp., the maker of Roomba robotic vacuums, has expressed 'substantial doubt' about its ability to continue operating as a going concern for the next 12 months. This announcement follows a 44% drop in revenue to $172 million and a net loss of $77 million in the fourth quarter of 2024. The company's financial struggles have been exacerbated by the collapse of a planned acquisition by Amazon in January 2024, which led to a loss of funding and subsequent layoffs of over 50% of its workforce. iRobot, under the leadership of CEO Gary Cohen, is now exploring strategic alternatives, including potential sales or refinancing of its debt, to address its financial challenges. Despite these difficulties, iRobot has launched eight new Roomba vacuum cleaners, ranging in price from $299 to $999, which are set to be available starting March 18. The new models incorporate advanced features such as lidar mapping and increased suction power of 7,000 pascals, aiming to regain market share amidst stiff competition from Chinese manufacturers.