Roomba maker iRobot files for bankruptcy

JONATHAN CHAN / REVIEWED / via IMAGN CONTENT SERVICES

The iRobot-Roomba 650. iRobot, the maker of the Roomba vacuum cleaner, filed for bankruptcy protection on Sunday, saying that it would go private after being bought by Picea Robotics, its primary manufacturer.

iRobot, the maker of the Roomba vacuum cleaner, filed for bankruptcy protection on Sunday, saying that it would go private after being bought by Picea Robotics, its primary manufacturer. The company, which raised concerns about staying in business in March, filed for Chapter 11 protection in Delaware bankruptcy court as it grapples with increased competition from lower-priced rivals and new U.S. tariffs.

iRobot generated about $682 million in total revenue in 2024, but its profits have been eroded by competition from Chinese rivals like Ecovacs Robotics. iRobot remains dominant in key markets like the U.S. and Japan, but competition forced it to lower its prices and make substantial investments in technological upgrades, according to bankruptcy court filings.

New U.S. tariffs have also harmed the company, especially a 46% levy on imports from Vietnam, where iRobot manufactures vacuum cleaners for the U.S. market. The tariffs raised the company’s costs by $23 million in 2025, while making it more difficult to plan for the future, according to iRobot’s court filings.

The company, which was the target of a thwarted $1.4 billion buyout by Amazon.com, has about $190 million in debt.

The debt stems from a 2023 loan that iRobot used to refinance its operations while a European competition investigation stalled the Amazon deal.

After the Amazon deal fell apart and iRobot fell behind on payments to Picea, the China-based manufacturer acquired iRobot’s debt from a group of investment funds managed by the Carlyle Group, according to court documents.

Don't miss out on what's happening!

Stay in touch with breaking news, as it happens, conveniently in your email inbox. It's FREE!

Email Sign Up
By clicking to sign up, you agree to Star-Advertiser's and Google's Terms of Service and Privacy Policy. This form is protected by reCAPTCHA.

Under iRobot’s bankruptcy plan, Picea will take 100% of the company’s equity and cancel the $190 million remaining on the 2023 loan, as well as an additional $74 million debt that iRobot owes to Picea under the companies’ manufacturing agreement.

Other creditors and suppliers will be paid in full, according to iRobot’s bankruptcy court filings.

iRobot said the bankruptcy is not expected to disrupt its app functionality, customer programs, global partners, supply chain relationships or product support.

The loss-making company was valued at $3.56 billion in 2021, driven by pandemic-fueled demand, but it is now worth around $140 million, according to data compiled by LSEG.

iRobot was founded in 1990 by three Massachusetts Institute of Technology roboticists. It initially focused on defense and space work before debuting the Roomba robotic vacuum in 2002.

The Roomba was an immediate success and it holds about 42% of the U.S. market share and 65% of the Japanese market share for robotic vacuum cleaners, according to the company.

iRobot is headquartered in Bedford, Massachusetts, and it has 274 employees, according to court documents.

See more:Business

6 Comments
By participating in online discussions you acknowledge that you have agreed to the Terms of Service. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. If your comments are inappropriate, you may be banned from posting. Report comments if you believe they do not follow our guidelines. Having trouble with comments? Learn more here.
Please log in to comment