On December 15, 2025, iRobot, the Massachusetts-based pioneer behind the Roomba robotic vacuum, filed for Chapter 11 bankruptcy protection and announced it would be taken private by its primary contract manufacturer, Shenzhen PICEA Robotics Co., Ltd. The move marks a dramatic turn for a company that once led the global robotic home cleaning market and helped define the smart home era, but has recently struggled under the weight of mounting debt, fierce competition, and punishing tariffs.
Founded in 1990 by three Massachusetts Institute of Technology roboticists—Colin Angle, Helen Greiner, and Rodney Brooks—iRobot initially focused on defense and space robotics. The company made headlines for devices that assisted the U.S. military, explored the Great Pyramid of Giza, and tracked oil spills in the Gulf of Mexico, according to NPR. But it was the 2002 debut of the Roomba robotic vacuum that propelled iRobot into millions of homes and cemented its reputation as an innovator in consumer robotics.
Despite its early successes and dominant market share—iRobot still holds about 42% of the U.S. and 65% of the Japanese robotic vacuum market, as reported by Reuters—the company has been battered by a series of setbacks over the past several years. The rise of lower-priced competitors, especially from China, forced iRobot to slash prices and invest heavily in R&D to keep up. Brands like Ecovacs, Roborock, and Anker (which makes Eufy vacuums) rapidly gained ground, eroding iRobot’s once-comfortable lead.
Tariffs introduced under President Trump’s trade regime further squeezed the company’s margins. Most Roombas are manufactured in Vietnam, but a 46% U.S. import tariff on those products, implemented as part of the U.S.-China trade war, increased iRobot’s costs by $23 million in 2025 alone. The company also owes $3.4 million in unpaid tariffs to U.S. Customs and Border Protection, according to NPR and court filings. These financial pressures, compounded by supply chain disruptions and softening consumer demand, left iRobot’s earnings in a tailspin: third-quarter 2025 sales were $145.8 million, down nearly 25% from the previous year, and U.S. revenues declined by 33% over the same period.
The company’s troubles were exacerbated by a failed merger with Amazon. In 2022, Amazon announced plans to acquire iRobot for approximately $1.7 billion, a deal that many saw as a lifeline for the embattled robotics maker. But after more than a year of regulatory scrutiny by both the European Union and the U.S. Federal Trade Commission, the deal was abandoned in January 2024. Amazon paid a $94 million termination fee, but iRobot was left with a $200 million loan it had taken to sustain operations during the merger review. "The Amazon acquisition was the most viable path for iRobot to compete globally," co-founder and former CEO Colin Angle told CNBC. "Today’s outcome is profoundly disappointing—and it was avoidable. This is nothing short of a tragedy for consumers, the robotics industry, and America’s innovation economy."
With the collapse of the Amazon deal, iRobot’s financial position quickly deteriorated. The company laid off 31% of its staff, and Angle stepped down as CEO and board chair. By March 2025, iRobot was publicly warning of possible bankruptcy if it couldn’t secure new capital or a buyer. In its December 2025 court filing, iRobot reported assets and liabilities between $100 million and $500 million, and debts totaling nearly $190 million. Most of this debt was owed to Picea, its primary contract manufacturer, which eventually acquired the debt from investment funds managed by the Carlyle Group after iRobot fell behind on payments.
Under the bankruptcy plan, Picea will assume 100% of iRobot’s equity and cancel the $190 million remaining on the 2023 loan, as well as an additional $74 million owed under the companies’ manufacturing agreement. Other creditors and suppliers will be paid in full, according to Reuters. The company’s common stock will be wiped out as part of the restructuring, a painful blow for shareholders. In premarket trading following the announcement, iRobot shares plunged nearly 70% to $1.31, and dropped more than 72% on December 16, 2025, according to Bloomberg Law and CNBC.
Despite the upheaval, iRobot and Picea have sought to reassure customers, employees, and partners that the transition will be seamless. "The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners," current CEO Gary Cohen said in a statement. "By combining iRobot’s innovation, consumer-driven design, and research and development with Picea’s history of innovation, manufacturing and technical expertise, we believe iRobot will be well-equipped to shape the next era of smart home robotics." Cohen and the company have emphasized that the bankruptcy proceedings are not expected to disrupt device functionality, app services, customer programs, global partnerships, supply chain relationships, or ongoing product support. The prepackaged Chapter 11 process is anticipated to be completed by February 2026.
Still, the acquisition by a Chinese firm has raised concerns among some observers. Helen Greiner, another iRobot co-founder, wrote on LinkedIn that the restructuring under a Chinese owner isn’t good for "consumers, employees, stockholders, Massachusetts or the USA." The deal has also reignited privacy worries, as Roombas’ advanced mapping features could theoretically provide detailed floor plans of users’ homes—a concern previously raised by privacy campaigners when Amazon attempted to buy iRobot.
For Picea, which boasts manufacturing facilities in China and Vietnam and claims to have built and sold more than 20 million robotic vacuum cleaners, the acquisition represents a significant expansion. Picea also produces its own branded devices and lists manufacturing partnerships with other major brands, including Shark and Anker, according to NPR.
iRobot’s journey from MIT startup to global leader—then to bankruptcy and foreign acquisition—serves as a cautionary tale about the volatile intersection of innovation, international competition, and regulatory oversight. As Angle warned, "iRobot’s bankruptcy serves as a warning for competition watchdogs." Amazon CEO Andy Jassy echoed similar sentiments, calling the regulatory roadblocks to the aborted merger a "sad story" that hindered iRobot’s ability to compete against rivals.
Once valued at more than $3.5 billion during the pandemic-fueled boom in home cleaning technology, iRobot is now worth about $140 million, with just 274 employees remaining. The company’s future will now play out under new ownership, as it seeks to regain its footing in a market it helped invent. Whether the Roomba can continue sweeping up success—or if it’s reached the end of the road—remains to be seen.
