The American manufacturer of robot vacuum cleaners iRobotknown worldwide for the brand Roomba, filed for bankruptcy and announced an agreement to be acquired by Picea Robotics, its main supplier and manufacturing partner. The company reported that it had filed for protection under Chapter 11 of the Delaware Bankruptcy Code in order to restructure its debts and continue operations.
The decision comes after months of increasing financial difficulties. iRobot had already warned in March that there were “significant doubts” about its ability to continue operations in a context marked by the advance of low-cost competitors, the increase in production costs and the associated setback. the failure of the sale to Amazon in 2024blocked by European regulators.
According to court documents, iRobot will be fully acquired by Picea Robotics, a company based in China that produces many of the brand’s products. As part of the restructuring plan, Picea will acquire 100 percent of iRobot’s share capital and write off around 100 percent of it $190 million in outstanding debt, This represents a loan taken out in 2023 as well as an additional $74 million related to production agreements between both companies. The company assured that remaining creditors and suppliers will be paid in full.
iRobot explained this in a statement The bankruptcy process should not affect the operation of your products or mobile application. nor its customer programs, global partners, supply chain or technical support. The company currently employs 274 people and is headquartered in Bedford, Massachusetts.
iRobot’s demise reflects a profound shift in the home robotics market. The company generated approx $682 million in revenue in 2024but its margins have been eroded by competition from Chinese manufacturers such as Ecovacs Robotics, which offer similar devices at lower prices. To maintain its position in key markets such as the United States and Japan, where the company holds about 42 percent and 65 percent of shares, respectively, iRobot has been forced to lower prices and continually invest in technological improvements.
Adding to this pressure were the effects of new US tariffs. In particular, a 46 percent tax on imports from Vietnam, where iRobot makes vacuum cleaners for the U.S. market, increased costs by about 10 percent $23 million in 2025according to court documents. The company found that this scenario made financial planning and business predictability significantly more difficult.
Another key factor was the debt accumulated after the collapse of the deal with Amazon, which had offered $1.4 billion to buy iRobot as part of its strategy to strengthen its ecosystem of smart home products Alexa and Ring. The operation was blocked by an antitrust investigation in the European Union and eventually shut down. Although iRobot received $94 million in compensation for violating the agreement, much of that money went to fees and partial loan repayment.
After the sale collapsed and delays in payments to Picea, the Chinese manufacturer acquired iRobot’s debt held by funds from private equity group Carlyle. This move paved the way for the current takeover of the company.
iRobot CEO Gary Cohenclaimed that the agreement with Picea will strengthen the company’s financial position and allow it to face a new phase. “By combining iRobot’s innovation and consumer-focused design with Picea’s manufacturing expertise and technical capabilities, we believe we are well positioned to shape the next era of home robotics,” he said.
The operation could also reignite debates about privacy and security. During Amazon’s attempted purchase, privacy groups raised concerns about possible access to floor plans and maps of users’ homes generated by the Roomba vacuums’ mapping capabilities. A takeover by a Chinese company could once again bring this issue to the forefront of public discussion.
Founded in 1990 by three roboticists Massachusetts Institute of TechnologyiRobot initially focused on defense and space exploration projects before revolutionizing the home market in 2002 with the introduction of the Roomba. The product quickly became a global success and a symbol of home automation. However, the surge in demand proved difficult to sustain during the pandemic. In 2021, the company was worth more than $3.5 billion. Today its valuation is just under 140 million.
iRobot shares are rising a decrease of almost 45 percent so far this year and saw another decline following the bankruptcy announcement.
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