Roomba Maker iRobot Reports ‘Substantial Doubt’ About Ability to Continue
Consumer robot company iRobot, maker of the Roomba robot vacuum, said in a Wednesday (March 12) earnings release that there is “substantial doubt” about its ability to continue as a going concern.
The company’s board of directors has initiated a formal strategic review in which they will consider a potential sale or strategic transaction, refinancing the company’s debt and other alternatives, iRobot said in the release.
In another press release issued Wednesday, iRobot said it added to its board of directors another independent director, Neal P. Goldman, who has a proven record of overseeing successful operational and financial transformations.
Goldman currently serves as CEO and managing member of SAGE Capital Investments and as chairman of the board of Talos Energy, according to the release.
“Neal’s experience guiding organizations through turnaround periods and his proven track record of overseeing operational and financial transformations will be invaluable to the Board as we continue to take decisive actions to ensure iRobot is best positioned to operate amidst a dynamic landscape,” iRobot Chairman of the Board Andrew Miller said in the release.
Goldman said in the release: “iRobot has established itself as an iconic brand in the innovative and rapidly evolving consumer robot space and has demonstrated commendable progress in its turnaround efforts to date.”
Also in its earnings release, iRobot said it announced the largest product launch in the company’s history on Tuesday (March 11).
The company also said that since implementing its operational restructuring plan in January 2024, it has reduced its headcount by more than 50%, lowered its sales and marketing expense, decreased inventory and cash outflows and significantly reduced the cost of its products.
The firm attributed the “substantial doubt” about its ability to continue as a going concern to uncertainty around consumer demand, competition, macroeconomic conditions and tariff policies, per the earnings release.
The company launched its restructuring in January 2024 when a planned acquisition by Amazon fell through.
Amazon signed an agreement to purchase iRobot in 2022 for $1.7 billion but the deal faced regulatory challenges in the European Union due to concerns over its impact on competition.
The two companies canceled the agreement after determining that it had “no path to regulatory approval” in the EU.
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