Roomba Maker iRobot Files for Chapter 11 Bankruptcy, Lender to Acquire Company
GeokHub
Contributing Writer
Delaware / Dec 15 (GeokHub) iRobot Inc., the U.S. maker of the popular Roomba robotic vacuum cleaner, has filed for Chapter 11 bankruptcy protection, announcing that its primary lender and contract manufacturer will acquire the company through a court-supervised restructuring plan.
The Massachusetts-based company, once a pioneer in consumer robotics, said the planned transaction with Picea Robotics — a China-based manufacturer and secured creditor — will see Picea assume control of the business and cancel iRobot’s outstanding debt. Under the arrangement, all other creditors and suppliers are expected to be repaid in full through the restructuring process.
iRobot reported $682 million in revenue for 2024 but struggled with declining profits, intensified competition from lower-cost rivals, and elevated costs linked to new tariffs that weighed on its operations this year. A previously planned $1.4 billion acquisition by Amazon was blocked by European regulators, leaving iRobot with significant debt and pressure on its balance sheet.
Despite its financial challenges, iRobot said key aspects of its business — including product support, app services, and customer care — are expected to continue uninterrupted during the Chapter 11 process. The company will remain operational as Picea finalizes the takeover, with plans to maintain global partnerships and product distribution while charting a path forward under new ownership.
