iRobot (IRBT.US) stock price plummets! Search for buyers frustrated as financial crisis worsens.

iRobot (IRBT.US) saw its stock price plummet by nearly 34% on Monday. The company warned that its plan to find a buyer is facing major obstacles, and its financial situation remains precarious. The Roomba vacuum manufacturer has been seeking a sale since March of this year, but according to information disclosed by iRobot in a regulatory filing, the last remaining potential buyer withdrew after a "lengthy period of exclusive negotiations" last week. Since Amazon.com, Inc. abandoned its $1.7 billion acquisition plan for iRobot in January 2024, the company's prospects have been uncertain. Amazon.com, Inc. attributed their decision to regulatory scrutiny pressure. Amazon.com, Inc. CEO Andy Jassy has said that the regulatory efforts to block the deal were a "regrettable story" and argued that the deal could have allowed iRobot to scale up and compete with fast-rising competitors. Since then, iRobot has struggled to generate cash flow and repay debt. In March of this year, the company warned that there were "substantial doubts" about its ability to continue operations. iRobot stated on Monday that the last potential buyer's offer per share was "significantly below" the company's stock price in recent months. The stock price of iRobot has declined by over 50% so far this year. iRobot wrote in the filing: "We have not engaged in substantive discussions with any potential acquiror or strategic transaction partner to date. Accordingly, we cannot assure you that the strategic alternatives evaluation process will result in a transaction or any particular outcome." In July 2023, iRobot secured a $200 million loan from Carlyle Group Inc to maintain operations until the completion of the Amazon.com, Inc. acquisition. The company stated in the filing that it has extended the waiver period for certain financial obligations to December 1st. The company also warned in the filing that if the lender does not provide additional funds, or if the company is unable to secure other sources of financing in the short term, iRobot "may be forced to significantly curtail or cease operations and would likely seek bankruptcy protection."