In recent years, the company has faced competition from lower-cost Chinese rivals including Picea, which has put pressure on sales and forced iRobot to cut its workforce. As a result of a leadership change in early 2024, the co-founder stepped down as CEO.
Amazon has offered to buy the company in 2023, seeing synergies with its Alexa-powered smart speakers and Ring doorbells.
However, EU regulators rejected the deal, citing concerns that it would reduce the visibility of rival vacuum cleaner brands on Amazon's website.
Amazon and iRobot have ended their deal just over a month after Adobe's $10 billion purchase of design software maker Figma was scrapped amid increased antitrust scrutiny in the US under the Joe Biden administration.
While iRobot received $94 million in compensation for terminating its deal with Amazon, a significant portion was used to pay consulting fees and repay part of a $200 million loan from private equity group Carlyle.
Picea's Hong Kong subsidiary acquired the remaining $191 million in debt from Carlyle last month. At that time, iRobot already owed Picea $161.5 million for production services, of which nearly $91 million was overdue.
Alvarez and Marsal work as an investment banker and financial advisor for iRobot. The Company receives legal advice from Paul, Weiss, Rifkind, Wharton & Garrison.
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