Roomba Maker iRobot Files for Bankruptcy, To Be Sold to Chinese Supplier
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iRobot, the company behind Roomba vacuums, has filed for bankruptcy and will be acquired by its supplier, Shenzhen PICEA Robotics, after 35 years.
iRobot, the company famous for its Roomba robotic vacuum cleaners, has filed for bankruptcy after 35 years in business. The company will be acquired by Shenzhen PICEA Robotics, its primary supplier.
The Chapter 11 filing in Delaware court will allow iRobot to restructure its finances. The agreement with PICEA Robotics will cancel approximately $264 million in debt, including $190 million from a 2023 loan and $74 million owed under manufacturing agreements. As a result, iRobot will become a private company, and its common stock will be removed from exchanges.
The acquisition is expected to allow iRobot to maintain its current operations, including customer support, app functionality, and supply chain relationships, without disruption.
Competition and Tariffs Squeeze iRobot
Founded in 1990 by three MIT roboticists, iRobot became a household name with the 2002 launch of the Roomba. The company sold over 50 million robots. iRobot went public in 2005 and its valuation peaked at $3.56 billion during the pandemic in 2021. That said, the reality is a bit more complicated. increased competition from lower-priced Chinese rivals, such as Ecovacs Robotics, and supply chain issues led to declining earnings.
Despite holding a strong market share of 42% in the U.S. and 65% in Japan, iRobot struggled to remain profitable. The company's revenue in 2024 was $682 million, but it faced significant pressure from price competition and tariffs. A 46% tariff on Vietnamese imports added $23 million to its costs in 2025. By the third quarter, iRobot's cash reserves had fallen to $24.8 million, and the company lacked access to additional capital.
Failed Amazon Deal Was Final Nail
The collapse of Amazon's proposed $1.7 billion acquisition in January 2024 proved to be the final blow for iRobot. European regulators threatened to block the deal due to concerns about competition. Although Amazon paid a $94 million breakup fee, iRobot immediately laid off 31% of its workforce, and CEO Colin Angle resigned. Over the previous five years, the company's stock had already plummeted by more than 90%, leaving it with a valuation of just $140 million prior to the bankruptcy filing.
