Roomba Maker iRobot Files for Bankruptcy; Chinese Firm Shenzhen PICEA Robotics Co. Acquires

• iRobot, maker of Roomba robot vacuums, has filed for bankruptcy.
• The company will be taken over by its main Chinese supplier, Shenzhen PICEA Robotics Co.
• iRobot's common stock will be wiped out under the proposed Chapter 11 plan.
• The company faced decline post-Covid due to supply chain issues and cheaper competitors, following initial success.
• A 2022 acquisition offer from Amazon failed due to EU competition authorities, despite iRobot receiving over $90 million in compensation.

Why It Matters: This highlights how market competition can lead to the downfall of tech giants.