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iRobot Bankruptcy: Roomba Maker Files for Chapter 11, Picea Robotics to Acquire and Take Company Private [ts2.tech]:

December 15, 2025 — iRobot, the Massachusetts-based company behind the Roomba robot vacuum, has filed for Chapter 11 bankruptcy protection in the United States and struck a deal that will hand ownership to its primary contract manufacturer and secured lender, Shenzhen PICEA Robotics (Picea). The company says it expects no interruption to Roomba devices, app services, customer programs, or product support as the court-supervised restructuring plays out. [1] [reuters.com]

The move caps a steep reversal for one of consumer robotics’ best-known pioneers. Once buoyed by pandemic-era demand and the near-household-name status of “Roomba,” iRobot has struggled under the weight of pricing pressure, rising costs, and fierce competition in a robot vacuum market that has become crowded with feature-rich alternatives—many of them coming from China-based brands and supply chains. [2] [reuters.com]

A “pre-packaged” Chapter 11 aimed at speed — and survival

Unlike a messy bankruptcy that drags on for years, iRobot says it has launched a pre-packaged Chapter 11 process in Delaware, backed by a Restructuring Support Agreement with Picea. In plain terms, much of the plan has been negotiated in advance, with the goal of moving quickly through court approval and emerging with a cleaner balance sheet. iRobot’s own timeline targets completion by February 2026. [3] [irobot.com]

iRobot’s CEO Gary Cohen framed the deal as a continuity play—designed to keep products supported and the business operating—while pairing iRobot’s brand and product design experience with Picea’s manufacturing scale. [4] [irobot.com]

What the deal means financially: equity wiped out, iRobot goes private

The most consequential detail for investors is also the most blunt: iRobot says common shareholders should expect a total loss if the Chapter 11 plan is approved. After the transaction closes, iRobot plans to become a private company wholly owned by Picea, and its shares will no longer be listed on Nasdaq. [5] [irobot.com]

Reuters reports that under the bankruptcy plan Picea will take 100% of iRobot’s equity and cancel the remaining balance of a $190 million loan from 2023, plus additional debt tied to the companies’ manufacturing relationship. Reuters also reported iRobot expects other creditors and suppliers to be paid in full. [6] [reuters.com]

Why iRobot filed: competition, tariffs, and a shrinking margin for error

iRobot’s Chapter 11 filing is the culmination of pressures that have been building for years—accelerated by a rapidly evolving robot vacuum category. Reuters cited iRobot’s bankruptcy filings describing how increased competition from lower-priced rivals eroded profits and forced price cuts while iRobot continued investing in technology upgrades. [7] [reuters.com]

One major factor highlighted in court filings: new U.S. tariffs. Reuters reports iRobot pointed specifically to a 46% levy on imports from Vietnam, where iRobot manufactures vacuum cleaners for the U.S. market, saying the tariffs increased its costs by $23 million in 2025 and made planning harder amid uncertainty. [8] [reuters.com]

The result has been a much narrower path to viability for a company that, while still influential, is no longer the default choice for many consumers comparing smart mapping, mopping, docking, and app-driven scheduling features across dozens of brands.

The Amazon deal that didn’t happen — and the debt hangover that followed

Today’s restructuring can’t be separated from iRobot’s failed attempt to sell itself to Amazon.

In 2022, Amazon announced it would buy iRobot in a deal widely reported at about $1.7 billion, but the acquisition was later abandoned after regulators signaled objections. The Associated Press reports Amazon cited “undue and disproportionate regulatory hurdles” after the European Union signaled its objection, and that Amazon paid iRobot a $94 million termination fee when the deal was called off. [9] [apnews.com]

Reuters adds that iRobot’s debt problems were exacerbated because iRobot took on a large loan in 2023 to refinance operations while the Amazon deal was stuck in regulatory review—then had to face that debt burden after the transaction collapsed. [10] [reuters.com]

Who is Picea Robotics — and why it matters that it’s iRobot’s manufacturer

Picea is not just a financial rescuer; it’s deeply embedded in how modern robot vacuums are designed and built.

iRobot describes Picea as a global manufacturer and service provider for robot vacuum cleaners with R&D and manufacturing facilities in China and Vietnam, employing over 7,000 people and holding more than 1,300 intellectual property rights worldwide. iRobot also says Picea has manufactured and sold more than 20 million robotic vacuum cleaners. [11] [irobot.com]

The Verge describes Picea as a major original design manufacturer (ODM) in the robot vacuum industry—building devices for multiple brands—while also selling its own products. That profile matters because it suggests iRobot’s future product roadmap could lean more heavily into ODM-driven platforms and supply-chain efficiencies than the bespoke engineering approach that made early Roombas stand out. [12] [theverge.com]

What this means for Roomba owners: will your robot still work?

This is the question consumers ask first—and iRobot has tried to answer it directly.

iRobot says it expects no disruption to:

• app functionality
• customer programs
• global partners
• supply chain relationships
• ongoing product support

during the Chapter 11 process. [13] [irobot.com]

TechCrunch adds an important nuance for smart-home customers worried about a “bricked” device: even if cloud-connected features ever become limited in a worst-case scenario, the physical device itself is not inherently dependent on every online service to perform basic cleaning. TechCrunch notes that what customers could lose in an extreme outcome is the “futuristic” layer—room-by-room control, app scheduling, and voice integrations—rather than the ability for the robot to run at all. [14] [techcrunch.com]

For now, the company’s message is simple: your Roomba should keep doing what it did yesterday—and the restructuring is designed to keep it that way.

Jobs, operations, and the path forward

iRobot is headquartered in Bedford, Massachusetts, and Reuters reports it has 274 employees, according to court documents. [15] [reuters.com]

In its announcement, iRobot said it filed routine motions that would allow it to keep operating in the ordinary course, including meeting commitments to employees and making timely payments to vendors and other creditors throughout the court-supervised process. [16] [irobot.com]

If the plan moves through court as intended, iRobot will exit Chapter 11 as a private company owned by Picea—effectively trading public-market pressure for the stability (and constraints) of being inside a manufacturing-driven parent structure.

The bigger story: how the robot vacuum market outgrew its pioneer

iRobot’s predicament is, in many ways, a case study in what happens when a category matures:

• Early innovators define the space.
• Manufacturing and component ecosystems expand.
• Features standardize fast.
• Competition becomes global and price-led.

Reuters notes iRobot remains strong in key markets, including the U.S. and Japan, even as competition forced price cuts and heavier investment. [17] [reuters.com]

But in a world where navigation systems, mapping, self-emptying docks, and mopping hybrids have become table stakes across the midrange, brand heritage alone can struggle to justify premium pricing—especially when tariffs and supply-chain costs swing unexpectedly.

A new wave of privacy questions — and what consumers can do

Any major ownership change involving connected devices can raise questions about data governance—particularly for products that map the inside of homes.

The Guardian notes that concerns over surveillance and home-mapping data were part of the public debate when Amazon tried to buy iRobot, and suggests that iRobot’s acquisition by a Chinese company could reignite scrutiny around the same issue. [18] [theguardian.com]

Practical steps for consumers who want to stay cautious (without panic):

• Review your Roomba app privacy settings and data-sharing options.
• Keep firmware updated (security patches matter most during corporate transitions).
• If you’re uncomfortable with cloud features, consider limiting integrations you don’t need.

What happens next

The immediate watchpoints are procedural but important:

• bankruptcy court approvals in Delaware,
• continuation of normal service and support,
• and whether iRobot can execute its product roadmap under Picea ownership.

iRobot says the restructuring is designed to stabilize operations and enable continued investment in its next generation of smart home robotics—while the company navigates one of the most consequential transitions in its 35-year history. [19] [irobot.com]

References

1. www.reuters.com [reuters.com], 2. www.reuters.com [reuters.com], 3. media.irobot.com [irobot.com], 4. media.irobot.com [irobot.com], 5. media.irobot.com [irobot.com], 6. www.reuters.com [reuters.com], 7. www.reuters.com [reuters.com], 8. www.reuters.com [reuters.com], 9. apnews.com [apnews.com], 10. www.reuters.com [reuters.com], 11. media.irobot.com [irobot.com], 12. www.theverge.com [theverge.com], 13. media.irobot.com [irobot.com], 14. techcrunch.com [techcrunch.com], 15. www.reuters.com [reuters.com], 16. media.irobot.com [irobot.com], 17. www.reuters.com [reuters.com], 18. www.theguardian.com [theguardian.com], 19. media.irobot.com [irobot.com]

• December 15, 2025, 8:56 AM EST. Canada's equity market shows resilience as the Bank of Canada signals dovish policy and the Fed backs supportive steps. In this environment, penny stocks on the TSX remain a potential entry point for investors seeking high-growth exposure. The piece spotlights a subset of favorites from a TSX penny stock screener, including Westbridge Renewable Energy (WEB), Canso Select Opportunities (CSOC.A), Sailfish Royalty (FISH), Zoomd Technologies (ZOMD) and others, with emphasis on price, market cap, and the Financial Health Rating. It also discusses broader context like debt-free status and recent fundraising moves that can affect risk and runway. Investors should weigh liquidity, regulatory risk, and potential catalysts from drilling results, resource developments, or royalty streams before trading these names.

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iRobot files for bankruptcy [theverge.com]:

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iRobot files for bankruptcy

The Roomba vacuum maker will be bought by Picea Robotics and plans to continue operating.

The Roomba vacuum maker will be bought by Picea Robotics and plans to continue operating.

Jennifer Pattison Tuohyis a senior reviewer with over twenty years of experience. She covers smart home, IoT, and connected tech, and has written previously for Wirecutter, Wired, Dwell, BBC, and US News.is a senior reviewer with over twenty years of experience. She covers smart home, IoT, and connected tech, and has written previously for Wirecutter, Wired, Dwell, BBC, and US News.

After 35 years, the maker of the Roomba robot vacuum filed for bankruptcy protection late Sunday night. Following warnings issued [theverge.com] earlier this year that it was fast running out of options, iRobot says [prnewswire.com] it is entering Chapter 11 protection and will be acquired by its contract manufacturer, China-based Picea Robotics [theverge.com].

The company says it will continue to operate “with no anticipated disruption to its app functionality, customer programs, global partners, supply chain relationships, or ongoing product support.” This should mean that, at least for now [theverge.com], your Roomba will continue cleaning your floors just as it did before.

The Massachusetts-based company has struggled for years amid increasing competition from Chinese manufacturers. One of the early pioneers in household robotics, iRobot was founded in 1990 and launched its first Roomba robot vacuum in 2002.

Over two decades later, while iRobot is the Kleenex of the robot vacuum space, its market share has eroded significantly to companies like Ecovacs and Roborock. An acquisition by Amazon in 2022 looked set to reverse the company’s declining fortunes, but the deal fell apart [theverge.com] under regulatory scrutiny.

Since then, iRobot has reinvented its product line [theverge.com] and cut prices to better compete with rivals, working with Picea Robotics to develop new Roombas. But it has continued to see revenue decline. Reuters reports [reuters.com] that US tariffs hit the company hard, especially the 46 percent in Vietnam, where it makes robot vacuums for the US.

“Today’s announcement marks a pivotal milestone in securing iRobot’s long-term future,” said Gary Cohen, chief executive officer at iRobot. “The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners.”

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Roomba maker iRobot bought by Chinese supplier after filing for bankruptcy [theguardian.com]:

iRobot helped pioneer robotic products for consumers with its Roomba vacuum cleaner. Photograph: Stephen Barnes/Technology/AlamyView image in fullscreeniRobot helped pioneer robotic products for consumers with its Roomba vacuum cleaner. Photograph: Stephen Barnes/Technology/AlamyRoomba maker iRobot bought by Chinese supplier after filing for bankruptcy

US-listed company, whose profits have been in decline since the pandemic, will be taken over by Picea

• Business live – latest updates [theguardian.com]

The US company behind the Roomba robot vacuum cleaner has filed for bankruptcy protection and agreed to be taken over by one of its Chinese suppliers.

iRobot, which is best known for debuting the Roomba vacuum cleaner in the early 2000s, will be taken over by a subsidiary of its main supplier, Picea Robotics.

The Roomba maker, which is listed in the US, said it had filed for Chapter 11 bankruptcy in Delaware as part of a restructuring agreement with Picea.

iRobot’s earnings have come under pressure in recent years, hit by supply chain problems and the rise of cheaper competitors. The company warned earlier this month that it could face bankruptcy.

The iRobot chief executive, Gary Cohen, said the deal with Picea would strengthen the company’s financial position.

“By combining iRobot’s innovation, consumer-driven design, and research and development 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,” he said.

The deal with Picea comes three years after Amazon first offered to buy iRobot at a valuation of $1.4bn (£1.1bn), as part of an effort to bolster its portfolio of consumer technology products such as its Alexa smart speakers and Ring doorbells.

However, the deal ultimately fell through [theguardian.com] over a clash with competition authorities in the EU.

iRobot received $94m in compensation for the collapse of the deal, but part of this was used to pay advisory fees and repay a portion of a loan from the private equity group Carlyle. Last month, Picea’s Hong Kong subsidiary acquired the remainder of the debt.

The company’s acquisition by a Chinese company could reignite concerns over surveillance. Amazon’s attempt to buy iRobot raised fears among privacy campaigners [theguardian.com] that the tech company would have access to floor plans of users’ homes using the vacuum cleaner’s mapping features.

The bankruptcy plan will allow iRobot to remain as a going concern and continue to meet its commitments to employees, make payments in full to vendors and other creditors, the company said in a statement.

iRobot, which was founded in 1990 by three roboticists at the Massachusetts Institute of Technology, helped pioneer robotic products for consumers.

Many recent versions of the Roomba have included features that are controlled through the brand’s app. The company said the bankruptcy filing was not expected to disrupt its app, supply chains or product support.

iRobot, which made a net loss of $145.5m last year, was valued at more than $3bn in 2021 thanks to strong demand for household cleaning products during the pandemic. It is now valued at about $137m.

On Friday, iRobot shares fell by more than 13% in New York. It has lost about 45% of its market value in the year to date.

On Friday, iRobot shares fell by more than 13% in New York. It has lost about 45% of its market value in the year to date.

Explore more on these topics

• Manufacturing sector [theguardian.com]
• Robots [theguardian.com]
• news [theguardian.com]

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Roomba vacuum cleaner firm iRobot files for bankruptcy [bbc.com]:

Roomba vacuum cleaner firm files for bankruptcy ShareSaveShareSavePeter HoskinsBusiness reporterShareSave

The US firm behind the Roomba smart vacuum cleaner, iRobot, has filed for bankruptcy protection after facing competition from Chinese rivals and being hit by tariffs.

Under the so-called pre-packaged Chapter 11 process [irobot.com], the main manufacturer of its devices, Shenzhen-based Picea Robotics, will take ownership of the firm.

The tough commercial landscape had forced iRobot to cut its prices and make major investments in new technology, according to documents filed on Sunday.

US import duties of 46% on goods from Vietnam, where most of iRobot's devices for the American market are made, increased its costs by $23m (£17.2m) this year, the firm said.

The loss-making company was valued at $3.56bn in 2021 after the pandemic helped to drive strong demand for its products. It is now valued at around $140m.

On Friday, iRobot's shares fell by more than 13% on the technology-heavy Nasdaq trading platform in New York.

iRobot said the bankruptcy filing was not expected to disrupt its app, supply chains or product support.

Founded in 1990 by three members of the Massachusetts Institute of Technology's (MIT) Artificial Intelligence Lab, iRobot initially focused on defence and space technology before launching the Roomba in 2002.

The Roomba holds about 42% of the US market share and 65% of the Japanese market share for robotic vacuum cleaners, according to the company.

Last year, a planned $1.7bn takeover deal by online retail giant Amazon was derailed by the European Union [bbc.com]'s competition watchdog.

Trade tariffs imposed by US Donald Trump on goods entering America from overseas has added to costs to many businesses, including iRobot, which rely on imports for product manufacturing.

Trump has argued that the import taxes will boost American jobs and industry.

Picea is a manufacturer of robotic vacuum cleaners, with research and development and production facilities in China and Vietnam.

It has more than 7,000 employees worldwide and has sold more than 20 million robotic vacuum cleaners.

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