Former iRobot (IRBT) chief executive Colin Angle criticized the company’s bankruptcy filing, calling the outcome deeply disappointing for customers and the broader robotics industry.

Angle, a co-founder of the robotic vacuum maker, said Monday that the decision to seek bankruptcy protection was avoidable and damaging. He described the situation as a tragedy for consumers and for American innovation.

iRobot announced Sunday that it filed for bankruptcy and agreed to be taken private by Shenzhen Picea Robotics. Picea is both a lender and a key supplier to the company. The filing follows several years of financial pressure.

Court documents show iRobot reported between $100 million and $500 million in assets and liabilities. The company said it owes nearly $100 million to Picea. It also listed more than $5.8 million owed to GXO Logistics and about $3.4 million owed to U.S. Customs and Border Protection for unpaid tariffs.

Shares of iRobot fell more than 72% on Monday after the announcement.

iRobot was founded in 1990 by Angle and two other researchers from the Massachusetts Institute of Technology. The company initially focused on military and defense technology. It later entered the consumer market with the launch of the Roomba robotic vacuum in 2002.

The company’s prospects weakened after Amazon abandoned its planned $1.7 billion acquisition in January 2024. Amazon cited regulatory scrutiny from the European Union and the U.S. Federal Trade Commission. Following the collapse of the deal, iRobot laid off 31% of its workforce, and Angle stepped down as chief executive and board chair.

Angle said Monday that the Amazon transaction represented the most viable path for iRobot to compete globally. He said the bankruptcy should serve as a warning to competition regulators.

Another co-founder, Helen Greiner, said in a LinkedIn post that restructuring under a Chinese owner would not benefit consumers, employees, shareholders, or the United States.

iRobot has faced rising competition from lower-cost rivals, including China-based Anker, Ecovacs, and Roborock. Supply chain disruptions and shipping delays further strained the business and hurt revenue.

In October, the company warned it would need to pursue bankruptcy if it failed to secure additional funding or a buyer.

Current CEO Gary Cohen said the restructuring is intended to support the company’s long-term future. iRobot said the process is not expected to disrupt product functionality or customer support.

The company reported third-quarter sales of $145.8 million, down nearly 25% from a year earlier, and carries about $190 million in debt.