iRobot Files for Bankruptcy, Plans Acquisition by Chinese Manufacturer

By John Pranay (Editor)

iRobot, the Massachusetts-based company behind the popular Roomba automatic vacuum cleaner, has filed for bankruptcy and is set to be acquired by Shenzhen PICEA Robotics Co., Ltd., its primary contract manufacturer, in a move that will take the company private for restructuring. The bankruptcy filing, which was made under Chapter 11 protection, does not anticipate any disruptions to iRobot's operations or services. The deal is expected to strengthen iRobot's financial position and ensure continuity for its consumers, customers, and partners.

The news of iRobot's bankruptcy and impending acquisition sent shockwaves through the tech industry, with the company's stock price plummeting to around $1.18 a share on Monday, down from $4.32 per share on Friday. iRobot's CEO, Gary Cohen, has stated that the transaction will help deliver continuity for the company's stakeholders, but investors are likely to experience a total loss, with no recovery on their investment. The company has been struggling to maintain its foothold in the robotic vacuum market, with competitors offering cheaper and higher-performing options.

• December 15, 2025: iRobot files for bankruptcy and announces plans to be acquired by Shenzhen PICEA Robotics Co., Ltd.

• 1990: iRobot was founded

• 2002: The Roomba was introduced

• 2024: Sale to Amazon collapses due to regulatory concerns from the U.S. and European Union

iRobot has been a pioneer in the robotic vacuum market since the introduction of the Roomba in 2002. However, in recent years, the company has faced increasing competition from cheaper and higher-performing options. Despite its struggles, iRobot has maintained a loyal customer base and has continued to innovate in the field of robotics. The company's bankruptcy and impending acquisition mark a significant turning point in its history, and

The bankruptcy and acquisition of iRobot pose several risks, including regulatory challenges, financial instability, and potential disruptions to the company's operations and services. iRobot owes U.S. Customs and Border Protection $3.4 million in unpaid tariffs and nearly $100 million to Picea, its primary contract manufacturer. The company's financial instability could also impact its suppliers and partners, potentially leading to a ripple effect throughout the industry.

The bankruptcy plan is expected to be reviewed by the courts, and if approved, the company's common stock holders will experience a total loss and not receive recovery on their investment. The deal is expected to be completed in the coming months, and

The bankruptcy and acquisition of iRobot mark a significant shift in the robotic vacuum market, highlighting the challenges faced by established players in the face of increasing competition. This trend is not unique to iRobot, as several other companies in the industry have struggled to maintain their market share. However, the acquisition by Picea, a Chinese manufacturer with a strong track record in the industry, suggests that the company may be able to leverage its expertise and resources to revitalize iRobot's operations and improve its competitiveness. This development raises questions about the future of the robotic vacuum market and the potential for Chinese companies to play a larger role in shaping its direction.

Our internal tone gauge currently reads: Bearish for this development.

1. Roomba maker iRobot files for bankruptcy, will sell to Chinese manufacturer — https://www.nydailynews.com/2025/12/15/roomba-irobot-bankruptcy-private-restructuring/

2. Roomba maker iRobot swept into bankruptcy — https://www.ft.com/content/239d4720-aee4-443d-a761-1bd8bb1a1923

Methodology: This analysis combines real-time data aggregation from manually selected global sources with advanced AI synthesis, engineered to provide neutral and data-driven insights.