Massachusetts: iRobot, the Massachusetts-based maker of Roomba robotic vacuum cleaners, has filed for Chapter 11 bankruptcy protection in the United States, signaling a major shift for the company that once dominated the consumer robotics market. The filing, submitted in the District of Delaware on Sunday, initiates a court-supervised restructuring under which the company will be taken private by its primary lender and contract manufacturer.
Under a pre-negotiated restructuring agreement, Shenzhen Picea Robotics and its affiliate Santrum Hong Kong will acquire 100 percent of iRobot’s equity. Picea, which has been both a key manufacturing partner and secured creditor, will take full control, relieving the company of significant debt while allowing day-to-day operations to continue uninterrupted. iRobot’s leadership emphasized that services such as customer support, app operations, and global supply-chain activities will remain operational throughout the restructuring process.
The Chapter 11 filing reflects several ongoing challenges for iRobot. Despite generating approximately $682 million in revenue in 2024 and maintaining strong market shares in regions like the U.S. and Japan, the company has faced mounting pressures from aggressive competition, particularly from lower-cost international rivals. Tariff increases, including levies on products manufactured in Vietnam, further elevated costs and squeezed profit margins. Additionally, the collapse of a previously agreed $1.4 billion acquisition by Amazon in 2024 removed a potential financial lifeline, compounding the company’s financial strain.
Industry analysts note that iRobot’s debt burden, including loans taken in previous years, played a critical role in necessitating Chapter 11 protection. While the brand remains widely recognized for its innovation in consumer robotics, the combination of high production costs, intense market competition, and regulatory hurdles created a scenario where restructuring was deemed the most viable path forward.
As part of the bankruptcy plan, all existing public equity will be cancelled, and iRobot will transition to private ownership under Picea. Creditors and suppliers are expected to be fully compensated through the restructuring. The company has signaled a focus on stabilizing operations and reinvesting in its robotics portfolio, leveraging Picea’s manufacturing and technical capabilities to strengthen product development and maintain its market presence.
iRobot’s Chapter 11 filing underscores the challenges faced by hardware innovators in today’s competitive global market, where even iconic brands can encounter financial distress. While the Roomba brand remains popular among consumers, the company now embarks on a new chapter under private ownership, balancing financial restructuring with continued innovation in home robotics.