Roomba maker files for Chapter 11
iRobot is pursuing manufacturer buyout
Reuters
..... iRobot, the maker of the Roomba vacuum clearer, field for bankruptcy protection on December 14, [2025] saying that it would go private after being bought by Picea Robotics, its primary manufacturer. The company, which raised concerns about staying in business in March, [2025] field for Chapter 11 protection in Delaware bankruptcy court as it grapples with increased competition from lower-priced rivals and new U.S. tariffs.
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iRobot generated about $682 million in total revenue in 2024, but its profits have been eroded by competition from Chinese rivals like Ecovacs robotics. iRobot remains dominant in key markets like the United States and Japan, but competition forced it to lower its prices and make substantial investments in technological upgrades, according to bankruptcy court filings.
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New U.S. tariffs have also harmed the company, especially a 46% levy on imports from Vietnam, where iRobot manufactures vacuum cleaners for the U.S. market. The tariffs raised the company's costs by $23 million in 2025, while making it more difficult to plan for the future, according to iRobot's court filings.
..... The company, which was the target of a thwarted $1.4 billion buyout by Amazon.com has about $190 million in debt. The debt stems from a 2023 loan iRobot used to refinance its operations while a European competition investigation stalled Amazon deal.
..... After the Amazon deal fell apart and iRobot feel behind on payments to Picea, the China-based manufacturer acquired iRobot's debt form a group of investment funds managed by the Calyle Group, according to court documents.
..... Under iRobt's bankruptcy plan, Picea will take 100% of tech company's equity and cancel the $190 million remaining on the 2023 loan, as well as an additional $74 million debt that iRobot owes to Picea under the companies' manufacturing agreement.
..... Other creditors and suppliers will be paid in full, according to iRobot's bankruptcy court filings.
..... iRobot said the bankruptcy is not expected to disrupt its app functionality, customers programs, global partners, supply chain relationships or product support.
..... The loss-making company was valued at $3.56 billion in 2021, driven by pandemic-fueled demand, but it is now worth around $140 million, according to data compiled by LSEG.
..... iRobot was founded in 1990 by three Massachusetts Institute of Technology robotics. It initially focused on defense and space work before debuting the Roomba robotic vacuum in 2002.
..... The Roomba was an immediate success and it holds about 42% of the U.S. market share and 65% of the Japanese market share for robotic vacuum cleaners, according to the company.
..... iRobot is headquartered in Bedford, Massachusetts, and it has 274 employees, according to court documents.