iRobot Corporation, the maker of the Roomba robotic vacuum cleaner, filed for pre-packaged Chapter 11 bankruptcy protection in Delaware on December 15, 2025. The filing marks a dramatic fall for the consumer robotics pioneer, clearing the way for its primary contract manufacturer, Shenzhen Picea Robotics, to acquire 100% of the company's equity through a court-supervised process.
The restructuring plan involves Picea canceling approximately $264 million in iRobot's combined debt. This includes about $190 million from a 2023 loan and an additional $74 million owed under the manufacturing agreement between the two companies. The company projects completing the restructuring by February 2026.
iRobot's valuation has plummeted from $3.56 billion in 2021 to approximately $140 million currently. The company's shares dropped more than 82% in premarket trading following the bankruptcy announcement. Court documents estimate iRobot's assets and liabilities each fall between $100 million and $500 million.
The company stated that operations will continue without disruption to its app, customer programs, global partnerships, supply chain, or product support. iRobot, which employs 274 people, assured that other creditors and suppliers will be paid in full under the bankruptcy plan.
Multiple factors contributed to iRobot's decline. The company faced intense competition from lower-priced Chinese rivals like Ecovacs Robotics, forcing price cuts and heavy investments in technology. New U.S. tariffs imposed a 46% levy on imports from Vietnam, where iRobot manufactures for the U.S. market, adding $23 million in costs in 2025 alone and creating significant planning uncertainty.
A major blow was the termination of Amazon's proposed $1.4 billion acquisition in January 2024, following a European competition investigation. Amazon paid a $94 million break-up fee. After the deal collapsed, iRobot's CEO resigned, its share price plunged, and the company cut nearly a third of its workforce.
Founded in 1990 by three MIT roboticists, iRobot launched the iconic Roomba in 2002 and sold over 50 million robots. The company generated approximately $682 million in revenue in 2024 and maintains significant market share—roughly 42% in the U.S. and 65% in Japan for robotic vacuums—but profitability has steadily deteriorated.
