iRobot Stock Tumbles. It Can’t Find a Buyer.

iRobot makes Roomba robot vacuums. (Justin Sullivan/Getty Images)

Key Points

• iRobot’s stock dropped 33% to $3.72 today, reflecting investor concerns about the company’s future.
• The company warned that its strategic review might not result in a transaction, impacting its business.
• iRobot faces potential default on December 1 if it cannot extend a credit waiver or secure additional funding.

iRobot might not be able to find a buyer—and investors are selling the Roomba maker’s stock.

In a filing today, iRobot warned that its “ongoing review of strategic alternatives will result in any transaction being consummated and speculation and uncertainty regarding the outcome of this review may adversely impact our business.”

iRobot stock has fallen 33% to $3.72.

Investors had been banking on the company selling itself ever since its merger with Amazon.com was called off in January due to regulatory issues. In March, the company released a filing that cited “going concern” issues. In the filing today, the company said it had entered into an amendment to its credit agreement that extended a waiver until Dec. 1, but warned that it would be in default on that date if it isn’t able to extend the waiver or raise more money.

“The waiver of covenant compliance under our senior secured term loan credit facility is time-limited; if this waiver is not extended at the end of the applicable period, we will be in default,” the company said in the filing. “Our financial condition continues to decline, and we may be unable to secure the additional funding needed to continue our operations.”

It has been a long fall for iRobot, the maker of the Roomba vacuum cleaner. Shares have dropped 98% from their all-time closing high of $161.16 on Jan. 27, 2021.

Write to Ben Levisohn at ben.levisohn@barrons.com