Roomba Maker iRobot Files for Bankruptcy, Acquired by Chinese Supplier Picea Robotics

Bedford, MA — iRobot, the pioneering American robotics company best known for its iconic Roomba vacuum cleaner, has filed for Chapter 11 bankruptcy protection. After 35 years in business, the company announced a "pre-packaged" restructuring agreement that will result in it being acquired by its primary contract manufacturer and secured lender, Shenzhen Picea Robotics Co., Ltd.

The voluntary filing, submitted in the District of Delaware, marks the end of iRobot’s run as a publicly traded U.S. tech company. Once the restructuring is complete, iRobot will become a private entity wholly owned by Picea Robotics, its partner in manufacturing the Roomba for the global market.

The Collapse of a Pioneer

Founded in 1990 by three MIT roboticists, iRobot helped launch the era of home robotics when it debuted the Roomba in 2002. The company reached its peak valuation of approximately $3.56 billion during the pandemic-driven demand boom of 2021. However, court filings and company statements highlight a sharp decline in its fortunes, driven by several major pressures:

• Failed Amazon Acquisition: The most damaging blow came in early 2024 when Amazon's proposed $1.7 billion acquisition of iRobot collapsed. The deal was abandoned after the European Union's competition watchdog signaled it would block the transaction on antitrust grounds.
• Intense Competition: iRobot struggled to compete with a wave of lower-priced Chinese rivals, such as Ecovacs Robotics, which offered comparable features and forced iRobot to slash prices and spend heavily on R&D just to maintain market share.
• Rising Costs and Tariffs: Geopolitical factors compounded the financial strain. The company cited a 46% U.S. tariff on imports from Vietnam—where much of its manufacturing is based—which added approximately $23 million in costs in 2025 alone.

As a result of these pressures, the company's value plummeted to around $140 million before the bankruptcy filing. The deal with Picea will eliminate approximately $264 million in iRobot’s debt.

No Disruption for Roomba Owners

Despite the bankruptcy filing and change in ownership, iRobot and Picea Robotics have assured customers and partners that operations will continue without interruption. The company expects the court-supervised process to be completed by February 2026.

According to a company statement, iRobot customers should anticipate:

• Uninterrupted Service: No disruption to Roomba app functionality, customer programs, or ongoing product support.
• Continued Operations: The company will continue to operate "in the ordinary course," honoring its commitments to employees and ensuring timely payments to vendors and suppliers.

For existing shareholders of iRobot's common stock, however, the outcome is negative. As Picea takes 100% ownership, all outstanding equity interests will be canceled, meaning stockholders "will experience a total loss and not receive recovery on their investment."

iRobot CEO Gary Cohen called the agreement a "pivotal milestone in securing iRobot’s long-term future," stating that combining iRobot’s innovation with Picea’s manufacturing strength will help shape the next era of smart home robotics.