iRobot Enters Chapter 11 Bankruptcy as Shenzhen Picea Seeks Control

iRobot Corporation, renowned for its Roomba vacuum cleaners, has filed for Chapter 11 bankruptcy in Delaware. The move comes as Shenzhen Picea is set to take control of the company while eliminating over $260 million in debt.

Key Takeaways

iRobot filed for Chapter 11 bankruptcy on December 15, 2025, seeing its shares plummet by more than 82% in premarket trading.
The company entered a restructuring agreement with Shenzhen Picea, which will acquire its equity and wipe out significant debt.
iRobot's current valuation has dropped dramatically, from $3.56 billion in 2021 to around $140 million.
Operations will continue normally despite the bankruptcy, ensuring no disruption to services or customer support.
iRobot, established in 1990, reported $682 million in revenue in 2024 but has faced tough competition and increased operational costs due to tariffs.

Roomba maker iRobot files Chapter 11 bankruptcy

iRobot Files for Bankruptcy

iRobot Corporation has initiated Chapter 11 bankruptcy proceedings in the District of Delaware following a Restructuring Support Agreement with its primary secured lender and manufacturer, Shenzhen PICEA Robotics, along with Santrum Hong Kong. This filing reflects a staggering decline in valuation from $3.56 billion in 2021 to an estimated $140 million today.

The pre-packaged Chapter 11 process began on Monday, with iRobot expecting to complete its restructuring efforts by February 2026. Under the terms of the restructuring agreement, Picea Robotics plans to acquire the entirety of iRobot’s equity through a court-overseen method while canceling approximately $190 million from a loan issued in 2023, in addition to $74 million owed under the manufacturing contract.

Court documents reveal that iRobot's assets are estimated to be between $100 million and $500 million, with liabilities falling within the same range.

Despite the bankruptcy, iRobot assures that it will continue operations without impacting app functionality, customer programs, global partnerships, supply chain dynamics, or product assistance. The firm, which has 274 employees and is headquartered in Bedford, Massachusetts, also affirmed that it will adhere to its bankruptcy plan, ensuring that other creditors and suppliers are fully compensated.

Founded in 1990 by three MIT roboticists, iRobot launched the Roomba in 2002.

In 2024, iRobot reported approximately $682 million in revenue. However, it has faced fierce competition from Chinese companies like Ecovacs Robotics, prompting price reductions and necessary technology upgrades, as noted in industry reports.

Additionally, U.S. tariffs resulted in a 46% tax on imports from Vietnam, where iRobot produces its vacuum cleaners for the American market, increasing costs by $23 million in 2025, as detailed in the company's financial reports.

Amazon's previously proposed $1.4 billion acquisition of iRobot fell through due to an investigation regarding European competition regulations. According to market research, iRobot retains about 42% of the U.S. market and 65% of the Japanese market for robotic vacuum cleaners.