Roomba maker iRobot files for Chapter 11 bankruptcy; Chinese manufacturer Shenzhen PICEA set to acquire the iconic American robotics company.
iRobot Corporation, the pioneering company that brought robotic vacuum cleaners into millions of American homes with its iconic Roomba, filed for Chapter 11 bankruptcy on Sunday, ending a turbulent 35-year journey from MIT laboratory to household name to financial collapse.
Under the terms of a restructuring support agreement, Shenzhen PICEA Robotics Co., iRobot's primary contract manufacturer and secured lender, will acquire 100% of the company's equity. The deal marks a dramatic end for the Bedford-based robotics pioneer, transferring control of an American technology icon to its Chinese supplier.
"Today's announcement marks a pivotal milestone in securing iRobot's long-term future," CEO Gary Cohen said in a statement. "The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners."
The company expects to complete the pre-packaged Chapter 11 process by February 2026. Upon completion, iRobot will become a private company wholly owned by PICEA, with its common stock delisted from the Nasdaq Stock Market.
The Road to Bankruptcy
iRobot's decline can be traced to a perfect storm of market challenges and a failed acquisition that ultimately proved fatal. Founded in 1990 by MIT roboticist Rodney Brooks and former students Colin Angle and Helen Greiner, the company sold more than 50 million robots worldwide after launching the first Roomba in 2002.
The company's fortunes shifted dramatically in 2022 when Amazon agreed to acquire iRobot for $1.7 billion, which would have been the e-commerce giant's fourth-largest acquisition. European regulators, however, threatened to block the deal over concerns that Amazon could disadvantage competitors on its marketplace platform. In January 2024, both companies walked away from the transaction, with Amazon paying a $94 million breakup fee.
The aftermath was devastating. Angle resigned as CEO, and iRobot shed 31% of its workforce while slashing research and development spending by approximately 30%. Revenue had been declining since 2021 amid supply chain disruptions and intensifying competition from lower-priced Chinese manufacturers.
By late 2025, iRobot's situation had become dire. The company owed PICEA $161.5 million for product manufacturing, with $90.9 million past due, according to SEC filings. Cash reserves dwindled to just $24.8 million, and the company acknowledged it had "no sources upon which it can draw for additional capital."
What It Means for Roomba Owners
iRobot moved quickly to reassure customers that the bankruptcy filing would not disrupt their devices or services.
"To be clear, today's news has no impact on our business operations or our ability to serve our customers—which continues to be our top priority," spokeswoman Michèle Szynal said in a statement to TechCrunch. "Our products are not changing."
The company stated it will continue operating in the ordinary course throughout the bankruptcy process, with no anticipated disruption to app functionality, customer programs, or product support. However, legal disclosures acknowledge inherent uncertainties—whether suppliers remain committed, whether the reorganization proceeds as planned, and whether the company survives at all.
Should the worst occur and iRobot's cloud services eventually go offline, existing Roombas would not become entirely useless. Physical controls would continue functioning, allowing users to start cleaning cycles manually. What would be lost are the smart features that define modern robot vacuums: app-based scheduling, room-specific cleaning commands, and voice control through virtual assistants.
An American Tech Tragedy
The iRobot story encapsulates a broader cautionary tale about American technology companies. The Carlyle Group, which provided a $200 million lifeline in 2023 to keep the company afloat, ultimately sold its debt position last month—reportedly at a discount.
Current stockholders face total loss under the proposed bankruptcy plan, with all outstanding equity interests to be cancelled. PICEA, a global manufacturer with research and manufacturing facilities in China and Vietnam, holds over 1,300 intellectual property rights and has manufactured more than 20 million robotic vacuum cleaners.
Cohen framed the acquisition as an opportunity rather than a defeat. "By combining iRobot's innovation, consumer-driven design, and R&D 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."
Whether that optimism proves justified remains to be seen. For now, the company that taught America's vacuums to navigate around furniture has itself navigated into the hands of its Chinese creditors.
