iRobot, famous for its Roomba robot vacuums, filed for Chapter 11 bankruptcy on December 14, 2025. The company, which has served over 50 million users worldwide, now faces a major change as a Chinese firm takes control amid tough market conditions. This rewrite simplifies the story while keeping all facts accurate.
Sharp Drop in Value
iRobot’s value fell sharply from $3.56 billion in 2021 to just $140 million by late 2025. Its stock price dropped 96% over four years, and after the bankruptcy news, shares plunged from $4.32 to $0.97 in a few days. Debts grew large, competition increased, and outside economic problems made recovery hard for the company.
In 2022, Amazon offered $1.7 billion to buy iRobot to link Roomba vacuums with its Alexa smart home system. iRobot took on $200 million in debt while waiting for approval, hoping the deal would bring needed money. The plan fell apart due to long delays and uncertainty during the review process.
EU Blocks the Sale
EU regulators stopped the Amazon deal in late 2023 because they feared it would harm competition in the smart home market. Without Amazon’s cash, iRobot faced big debts and lost ground to Chinese competitors like Ecovacs. These rivals sell models like the Deebot N30 OMNI with similar features at 40-50% lower prices, thanks to lower costs and support from China’s robotics programs.
New U.S. tariffs of 46% on imports from Vietnam, where iRobot makes many vacuums, raised costs by $23 million in 2025. Suppliers asked for cash payments upfront, and stores ordered fewer products, making the price difference with Chinese options even bigger. iRobot co-founder Colin Angle called the bankruptcy a tragedy for customers, the robotics field, and U.S. innovation, pointing to unpredictable tariffs as a key issue.
Local Impact Hits Hard
The bankruptcy affects Bedford, Massachusetts, iRobot’s home base and a center for robotics in New England. It puts hundreds of jobs at risk in an area that grew strong from iRobot’s successes. Under Chapter 11, the company keeps running daily operations, pays workers and vendors normally, and honors customer warranties.
Shenzhen Picea Robotics, iRobot’s main creditor and manufacturer, will take full ownership through a pre-packaged bankruptcy plan by turning debt into 100% equity. Picea bought $190.7 million of iRobot’s debt recently and plans to keep making Roombas, cut costs, and move some production to places like Mexico to avoid tariffs. Customers will get software updates and warranty support for now, but the future in the U.S. market looks unclear with new Chinese ownership.
Restructuring Plan Ahead
A U.S. bankruptcy court in Delaware will review the plan, but support from creditors suggests quick approval by February 2026. iRobot will stay private, delist from Nasdaq, and focus on e-commerce, apps, and customer support without disruptions. Picea faces the same issues as iRobot, like supply chain problems, tariffs, and strong rivals.
iRobot’s fall shows how tariffs meant to protect U.S. companies can speed up takeovers by foreign firms. Robotics businesses must now plan around trade risks and global supply chains. As U.S. tech leaders deal with these changes, the field questions how to keep innovating against growing competition from abroad. Owners of Roombas should note no immediate changes, but watch for updates on long-term support.
Sources Manufacturing Dive – “Roomba maker files for Chapter 11 bankruptcy, seeks strategic transaction with Picea” (December 15, 2025)
CNBC – “Former iRobot CEO calls Roomba maker’s bankruptcy ‘a tragedy’” (December 15, 2025)
Fortune – “Roomba bites the dust: iRobot files for bankruptcy” (December 15, 2025)
The Verge – “Who is Picea Robotics, Roomba’s new owner?” (December 15, 2025)
BBC – “Roomba vacuum cleaner firm iRobot files for bankruptcy” (December 15, 2025)