US consumer robotics giant iRobot has reportedly fallen into a severe financial crisis. As of November 24, the company owed over $350 million (approximately 2.5 billion RMB) to its Chinese OEM partner, Shenzhen-based SunChuan Robotics. Its cash reserves have dwindled to just $24.8 million, putting it on the verge of technical bankruptcy.

iRobot was founded in 1990 by professors from MIT. In 2002, it launched the first Roomba robotic vacuum cleaner, at one point holding over 80% of the US robotic vacuum market. Its products were also widely used in military, rescue, and other fields.

In 2022, the company reached a turning point, experiencing a comprehensive decline across global markets. Revenue dropped 24% year-on-year to $1.183 billion, with a net loss of $286.3 million. That year, Amazon proposed an acquisition, but the deal failed due to antitrust review. Subsequently, iRobot laid off 350 employees, accounting for 31% of its workforce, the CEO resigned, strategies were scaled back, and its financial situation further deteriorated.

With a rigid pricing strategy and continuously declining product competitiveness, this year iRobot’s global market share has fallen to 7.9%. As of September this year, the company’s total assets stood at $481 million, with total liabilities of $508 million and shareholder equity at -$26.8 million, marking it as officially insolvent.