Roomba maker iRobot files for bankruptcy, pursues manufacturer buyout
iRobot, the maker of the Roomba vacuum cleaner, filed for bankruptcy protection on Sunday, saying that it would go private after being bought by Picea Robotics.
TL;DR
- iRobot filed for Chapter 11 bankruptcy protection.
- Picea Robotics, iRobot's primary manufacturer, will acquire the company and take it private.
- Increased competition from lower-priced rivals, especially Chinese companies, impacted profits.
- New U.S. tariffs, including a 46% levy on imports from Vietnam, increased costs by $23 million in 2025.
- The company had about $190 million in debt, stemming from a 2023 loan.
- The European competition investigation stalled a prior $1.4 billion buyout attempt by Amazon.
- Picea Robotics acquired iRobot's debt after the Amazon deal fell apart and iRobot fell behind on payments.
- Under the bankruptcy plan, Picea will assume 100% of iRobot's equity and cancel significant debt owed to it.
- Other creditors and suppliers are expected to be paid in full.
- The bankruptcy is not expected to disrupt app functionality, customer programs, or product support.
- iRobot's valuation has dropped significantly since 2021, from $3.56 billion to around $140 million.
- Founded in 1990 by MIT roboticists, iRobot initially focused on defense and space before launching the Roomba in 2002.
- Roomba holds approximately 42% of the U.S. market share and 65% of the Japanese market share for robotic vacuum cleaners.
- iRobot is headquartered in Bedford, Massachusetts, and has 274 employees.