iRobot tells investors its future is in doubt
Source: The Verge
Since taking out that loan from the Carlyle Group and facing increasing competition from Chinese manufacturers, iRobot has not found a way to become profitable again and says it expects to incur losses for “the foreseeable future.” With no clear path to paying off the debt, the future looks bleak for the inventor of the robot vacuum.
In its quarterly financial report published March 12, the company, which saw its revenue in the U.S. drop by 47 percent in the fourth quarter, said it had “initiated a formal strategic review to evaluate a broad range of alternatives, including, but not limited to, exploring a potential sale or strategic transaction and refinancing our debt.”
If its new line of products is not a success, which the report notes is entirely possible due to “consumer demand, competition, macroeconomics conditions and tariff policies,” and no other recourse is found to pay off its debt, iRobot says the company may be unable to continue beyond 12 months.
