iRobot Files for Bankruptcy Amidst Increased Competition and Restructuring

iRobot, the renowned maker of the Roomba vacuum cleaner, has filed for Chapter 11 bankruptcy protection amid increased competition and operational restructuring. The Massachusetts-based company announced this decision as part of a court-supervised process to be acquired by Shenzhen Picea Robotics Co.

Ltd., its primary contract manufacturer. According to NBC News, iRobot's financial struggles have been exacerbated by declining revenue and a failed acquisition by Amazon in 2024, which was halted due to antitrust concerns from EU regulators.

Following this setback, iRobot’s stock saw a significant drop, and the company has since experienced layoffs and a decline in market share. Despite the bankruptcy filing, iRobot's CEO, Gary Cohen, assured customers that there would be no disruptions to their devices or services, stating that operations would continue normally during the restructuring process.

ZDNet emphasized that while the Roomba brand's future may shift under Picea's ownership, current users can expect ongoing support and functionality of their devices. Meanwhile, the acquisition aims to eliminate nearly $350 million in debt and position iRobot for future growth, although it reflects a significant change from its origins as a pioneering innovator in home robotics.

The entire Chapter 11 process is expected to conclude by February 2026, as reported by Oregonian.