Struggling US vacuum cleaner Company iRobot, a former $1.4 billion buyout target of Amazon whose products are distributed by Melbourne based iXL Home is struggling to clean up their own financial mess, the news broke 24 hours after the Company announced a new range of products.
Under siege from superior Chinse robotic cleaning products the big question now is whether they have the ability to stay in business.
The company reported a net loss of $77.1 million in the fourth quarter ended on Dec. 28, according to Wednesday’s statement. At year-end, iRobot held $134 million in cash or cash equivalents, up from the previous quarter but down from the year-ago level. The figure includes a $40 million draw down of restricted cash that iRobot said it planned to use to purchase inventory.
Shares of the company fell more than 40% last night extending a multi-year decline from its pandemic-era peak.
“Given macroeconomic and tariff-related uncertainties, there is substantial doubt about iRobot’s ability to continue as a going concern,” iRobot said in a statement.
A former $1.4 billion buyout target of Amazon. The deal was scrapped due to antitrust objections.
The US Company who could benefit from Donald Trump’s new tariff strategy that is set to hurt their competitors claimed in their latest financials update that they doubt whether it can continue as a going concern.
The firm’s board has begun a formal strategic review to evaluate options, including refinancing its debt and exploring a potential sale, according to the statement.
The company’s market value is now $200 million, with the possibility emerging that the brand could be sold to a Chinese robotic vacuum Company.
Back in 2023 Carlyle Group. provided a $200 million loan at 9% through its private credit arm. The Company is believed to have burnt through most of that cash with Carlyle still looking for a repayment.
The company is paying a fee in order to amend the loan, according to a Wednesday filing. That will include $3.6 million, or about 2% of the total loan outstanding, which will be paid with additional debt.
Management have warned that there’s “no assurance that the new product launches will be successful due to potential factors, including, but not limited to consumer demand, competition, macroeconomic conditions, and tariff policies.”
The company said it was exploring options, including a potential sale or debt refinancing, just a day after it launched eight new Roomba models in its biggest product rollout.
When the Amazon takeover was scrapped, founder Colin Angle stepped down as CEO in January last year, suggesting that a leader with turnaround expertise might better serve the company.
In May last year, the company appointed Gary Cohen as CEO to head its recovery efforts.
