Roomba Creator iRobot Declares Bankruptcy, Acquired by Chinese Company
iRobot, the trailblazing creator of the renowned Roomba vacuum cleaner, has declared Chapter 11 bankruptcy. The company is set to be acquired by its Chinese manufacturer, Shenzhen Picea Robotics, signifying a significant downfall for the 35-year-old Massachusetts-based robotics firm.
The bankruptcy filing follows the withdrawal of Amazon’s $1.4 billion acquisition proposal in January 2024, due to regulatory scrutiny from the European Union and U.S. Federal Trade Commission. Established in 1990 by MIT researchers, iRobot faced increasing competition from more affordable Chinese competitors, amassing a debt of nearly $100 million to supplier Picea, and $3.4 million in unpaid tariffs.
In 2024, the company generated approximately $682 million in revenue. However, profits were drastically affected by fierce price competition and a 46% tariff on imports from Vietnam, where iRobot manufactures its products. These tariffs alone added $23 million in costs during 2025. Former CEO Colin Angle described the bankruptcy as “a tragedy for consumers, the robotics industry, and America’s innovation economy”, attributing regulatory opposition to the Amazon deal as eliminating “the most viable path” for the company’s global competition.
iRobot has reassured customers that the bankruptcy will not interfere with app functionality, customer support, or product operations. The company anticipates completing the restructuring process by February 2025.
Source: CNBC