Another wake up call for the credit market.
iRobot’s Chapter 11 filing is a reminder that even iconic category defining companies can break faster than most expect. Roomba did not disappear overnight. The unraveling happened gradually until suddenly it did not.
The equity story made the extent of the risk obvious only at the very end. iRobot’s stock did not collapse in a single moment it eroded over years down nearly 90 percent from its peak with intermittent rallies masking what was building underneath. From a credit risk perspective the deterioration was visible well before the bankruptcy. Equity volatility was the symptom. Credit stress was the signal.
