December 15, 2025 — iRobot, the Massachusetts-based company behind the Roomba robot vacuum, has filed for Chapter 11 bankruptcy protection in the United States and struck a deal that will hand ownership to its primary contract manufacturer and secured lender, Shenzhen PICEA Robotics (Picea). The company says it expects no interruption to Roomba devices, app services, customer programs, or product support as the court-supervised restructuring plays out. [1]
The move caps a steep reversal for one of consumer robotics’ best-known pioneers. Once buoyed by pandemic-era demand and the near-household-name status of “Roomba,” iRobot has struggled under the weight of pricing pressure, rising costs, and fierce competition in a robot vacuum market that has become crowded with feature-rich alternatives—many of them coming from China-based brands and supply chains. [2]
A “pre-packaged” Chapter 11 aimed at speed — and survival
Unlike a messy bankruptcy that drags on for years, iRobot says it has launched a pre-packaged Chapter 11 process in Delaware, backed by a Restructuring Support Agreement with Picea. In plain terms, much of the plan has been negotiated in advance, with the goal of moving quickly through court approval and emerging with a cleaner balance sheet. iRobot’s own timeline targets completion by February 2026. [3]
iRobot’s CEO Gary Cohen framed the deal as a continuity play—designed to keep products supported and the business operating—while pairing iRobot’s brand and product design experience with Picea’s manufacturing scale. [4]
What the deal means financially: equity wiped out, iRobot goes private
The most consequential detail for investors is also the most blunt: iRobot says common shareholders should expect a total loss if the Chapter 11 plan is approved. After the transaction closes, iRobot plans to become a private company wholly owned by Picea, and its shares will no longer be listed on Nasdaq. [5]
Reuters reports that under the bankruptcy plan Picea will take 100% of iRobot’s equity and cancel the remaining balance of a $190 million loan from 2023, plus additional debt tied to the companies’ manufacturing relationship. Reuters also reported iRobot expects other creditors and suppliers to be paid in full. [6]
Why iRobot filed: competition, tariffs, and a shrinking margin for error
iRobot’s Chapter 11 filing is the culmination of pressures that have been building for years—accelerated by a rapidly evolving robot vacuum category. Reuters cited iRobot’s bankruptcy filings describing how increased competition from lower-priced rivals eroded profits and forced price cuts while iRobot continued investing in technology upgrades. [7]
One major factor highlighted in court filings: new U.S. tariffs. Reuters reports iRobot pointed specifically to a 46% levy on imports from Vietnam, where iRobot manufactures vacuum cleaners for the U.S. market, saying the tariffs increased its costs by $23 million in 2025 and made planning harder amid uncertainty. [8]
The result has been a much narrower path to viability for a company that, while still influential, is no longer the default choice for many consumers comparing smart mapping, mopping, docking, and app-driven scheduling features across dozens of brands.
The Amazon deal that didn’t happen — and the debt hangover that followed
Today’s restructuring can’t be separated from iRobot’s failed attempt to sell itself to Amazon.
In 2022, Amazon announced it would buy iRobot in a deal widely reported at about $1.7 billion, but the acquisition was later abandoned after regulators signaled objections. The Associated Press reports Amazon cited “undue and disproportionate regulatory hurdles” after the European Union signaled its objection, and that Amazon paid iRobot a $94 million termination fee when the deal was called off. [9]
Reuters adds that iRobot’s debt problems were exacerbated because iRobot took on a large loan in 2023 to refinance operations while the Amazon deal was stuck in regulatory review—then had to face that debt burden after the transaction collapsed. [10]
Who is Picea Robotics — and why it matters that it’s iRobot’s manufacturer
Picea is not just a financial rescuer; it’s deeply embedded in how modern robot vacuums are designed and built.
iRobot describes Picea as a global manufacturer and service provider for robot vacuum cleaners with R&D and manufacturing facilities in China and Vietnam, employing over 7,000 people and holding more than 1,300 intellectual property rights worldwide. iRobot also says Picea has manufactured and sold more than 20 million robotic vacuum cleaners. [11]
The Verge describes Picea as a major original design manufacturer (ODM) in the robot vacuum industry—building devices for multiple brands—while also selling its own products. That profile matters because it suggests iRobot’s future product roadmap could lean more heavily into ODM-driven platforms and supply-chain efficiencies than the bespoke engineering approach that made early Roombas stand out. [12]
What this means for Roomba owners: will your robot still work?
This is the question consumers ask first—and iRobot has tried to answer it directly.
iRobot says it expects no disruption to:
- app functionality
- customer programs
- global partners
- supply chain relationships
- ongoing product support
during the Chapter 11 process. [13]
TechCrunch adds an important nuance for smart-home customers worried about a “bricked” device: even if cloud-connected features ever become limited in a worst-case scenario, the physical device itself is not inherently dependent on every online service to perform basic cleaning. TechCrunch notes that what customers could lose in an extreme outcome is the “futuristic” layer—room-by-room control, app scheduling, and voice integrations—rather than the ability for the robot to run at all. [14]
For now, the company’s message is simple: your Roomba should keep doing what it did yesterday—and the restructuring is designed to keep it that way.
Jobs, operations, and the path forward
iRobot is headquartered in Bedford, Massachusetts, and Reuters reports it has 274 employees, according to court documents. [15]
In its announcement, iRobot said it filed routine motions that would allow it to keep operating in the ordinary course, including meeting commitments to employees and making timely payments to vendors and other creditors throughout the court-supervised process. [16]
If the plan moves through court as intended, iRobot will exit Chapter 11 as a private company owned by Picea—effectively trading public-market pressure for the stability (and constraints) of being inside a manufacturing-driven parent structure.
The bigger story: how the robot vacuum market outgrew its pioneer
iRobot’s predicament is, in many ways, a case study in what happens when a category matures:
- Early innovators define the space.
- Manufacturing and component ecosystems expand.
- Features standardize fast.
- Competition becomes global and price-led.
Reuters notes iRobot remains strong in key markets, including the U.S. and Japan, even as competition forced price cuts and heavier investment. [17]
But in a world where navigation systems, mapping, self-emptying docks, and mopping hybrids have become table stakes across the midrange, brand heritage alone can struggle to justify premium pricing—especially when tariffs and supply-chain costs swing unexpectedly.
A new wave of privacy questions — and what consumers can do
Any major ownership change involving connected devices can raise questions about data governance—particularly for products that map the inside of homes.
The Guardian notes that concerns over surveillance and home-mapping data were part of the public debate when Amazon tried to buy iRobot, and suggests that iRobot’s acquisition by a Chinese company could reignite scrutiny around the same issue. [18]
Practical steps for consumers who want to stay cautious (without panic):
- Review your Roomba app privacy settings and data-sharing options.
- Keep firmware updated (security patches matter most during corporate transitions).
- If you’re uncomfortable with cloud features, consider limiting integrations you don’t need.
What happens next
The immediate watchpoints are procedural but important:
- bankruptcy court approvals in Delaware,
- continuation of normal service and support,
- and whether iRobot can execute its product roadmap under Picea ownership.
iRobot says the restructuring is designed to stabilize operations and enable continued investment in its next generation of smart home robotics—while the company navigates one of the most consequential transitions in its 35-year history. [19]
References
1. www.reuters.com, 2. www.reuters.com, 3. media.irobot.com, 4. media.irobot.com, 5. media.irobot.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. apnews.com, 10. www.reuters.com, 11. media.irobot.com, 12. www.theverge.com, 13. media.irobot.com, 14. techcrunch.com, 15. www.reuters.com, 16. media.irobot.com, 17. www.reuters.com, 18. www.theguardian.com, 19. media.irobot.com
