TAIPEI, Taiwan — December 15, 2025 — iRobot, the pioneering American company that brought robotic vacuum cleaners into millions of homes, has filed for Chapter 11 bankruptcy, signaling the end of its three-decade run as an independent U.S. technology icon. Control of the company, and its flagship Roomba brand, will be handed over to its largest creditor and primary manufacturer, China-based Shenzhen PICEA Robotics Co., Ltd.
The company, founded in 1990 by three MIT researchers with an ambitious vision for robotics, officially filed for a “pre-packaged Chapter 11 process” in Delaware court on Sunday. The move will see the company go private and the equity of current common shareholders wiped out.
The Perfect Storm: Competition, Tariffs, and a Failed Deal
iRobot’s collapse, which follows a period of financial turmoil, is attributed to a perfect storm of challenges:
- Intense Competition: Despite retaining strong market share in key regions like the U.S. and Japan, iRobot struggled to compete with a deluge of lower-priced, feature-rich robot vacuums from Chinese rivals like Ecovacs Robotics and Roborock. This forced iRobot to slash prices and spend heavily on development, eroding profits.
- Crushing Tariffs: The company’s attempt to diversify its supply chain by moving production to Vietnam was undermined by a massive 46% U.S. tariff on Vietnamese imports, adding an estimated $23 million to its costs in 2025 alone.
- The Amazon Deal Collapse: The final, devastating blow came in January 2024, when a proposed $1.7 billion acquisition by Amazon was terminated after the European Union’s competition watchdog signaled its intention to block the deal. The resulting $94 million breakup fee helped briefly, but the company’s momentum, cash reserves, and leadership stability (CEO Colin Angle resigned) were irreparably damaged.
From MIT Innovation to Shenzhen Control
The acquisition by Shenzhen PICEA Robotics, a manufacturer with over 7,000 employees and a portfolio of more than 20 million robotic vacuums built, is a case study in the shift of technological control. PICEA had already acquired $190 million of iRobot’s debt from its lender, the Carlyle Group, and was owed an additional $74 million under manufacturing agreements. The restructuring agreement allows PICEA to take 100% of the equity and cancel approximately $264 million in debt.
“Today’s announcement marks a pivotal milestone in securing iRobot’s long-term future,” said iRobot CEO Gary Cohen. “By combining iRobot’s innovation, consumer-driven design, and R&D 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.”
What This Means for Roomba Owners
iRobot has assured customers that the Chapter 11 filing is a non-disruptive reorganization. The company expects to continue operating normally throughout the process, which is anticipated to be completed by February 2026.
Key Customer Takeaways:
- No Service Interruption: There are no anticipated disruptions to app functionality, customer programs, global partners, or ongoing product support. Your Roomba should continue to clean and connect as usual.
- Supply Chain Continuity: The new owner, PICEA, is the long-time primary manufacturer, which should ensure the supply chain for parts and new models remains stable.
The journey of the Roomba—from a symbol of American-led consumer robotics to a casualty of global competition and trade policy—concludes with its technology and brand under foreign ownership, underscoring the brutal realities of the global hardware market.
Would you like to know more about the details of the failed Amazon acquisition or the history of iRobot’s military and space robotics before the Roomba?
