TL;DR
iRobot has entered Chapter 11 bankruptcy and signed a restructuring support agreement that would hand ownership to Shenzhen-based Picea Robotics. The company says day-to-day operations will continue and it will seek to meet obligations to employees, suppliers and creditors during the process.
What happened
iRobot, the company behind Roomba robot vacuums, filed for Chapter 11 bankruptcy protection and announced a restructuring support agreement under which its primary manufacturer, Shenzhen-based Picea Robotics, would acquire the business. The filing came after a period of falling sales and operational setbacks; iRobot reported $145.8 million in revenue for the quarter ending September 27, a 24.6 percent decline year over year. Company filings showed it owed Picea $158.3 million as of October 31, including $29.1 million past due. Executives said operations will continue through the Chapter 11 process and the company expects to meet financial commitments to staff, vendors and creditors. iRobot cited weakened consumer spending, production and shipping disruptions, tariffs and the collapse of a proposed Amazon acquisition in 2024 among the factors behind its financial decline. Earlier restructuring steps included cutting headcount by roughly half and reorganizing operations.
Why it matters
- A transfer of iRobot to its manufacturer would reshape control of a household robotics pioneer and could influence product strategy and supply-chain decisions.
- The Chapter 11 filing signals broader pressures in the consumer-robotics market, including softer demand and logistics challenges that hurt revenue.
- Large outstanding obligations to a single manufacturer highlight risks in concentrated production relationships for hardware companies.
- The outcome could affect vendors, creditors and the many customers who buy into the Roomba brand if product plans or support change.
Key facts
- iRobot filed for Chapter 11 bankruptcy protection and entered a restructuring support agreement with Picea Robotics.
- Picea Robotics is a Shenzhen-based manufacturer that would acquire iRobot under the agreement.
- For the quarter ending September 27, iRobot reported $145.8 million in revenue, down $47.6 million (24.6%) year over year.
- As of October 31, iRobot owed Picea $158.3 million, of which $29.1 million was past due.
- iRobot attributed its decline to reduced consumer sentiment, ongoing production delays, shipping disruptions and increased costs tied to U.S. tariffs.
- A proposed $1.7 billion acquisition by Amazon collapsed in 2024 and was cited as a factor in iRobot's troubles.
- In 2023 iRobot obtained a three-year, $200 million loan from the Carlyle Group; much of that loan remained unpaid and was scheduled to mature in July 2026.
- Earlier in 2025 the company said it had reduced staff by about half and reorganized operations in efforts to stabilize finances.
What to watch next
- Whether the restructuring support agreement with Picea completes and the timeline for any closing — not confirmed in the source.
- How the Chapter 11 process will address outstanding loans, including the Carlyle loan due July 2026 — not confirmed in the source.
- Potential changes to manufacturing, product roadmaps or after-sales support under Picea ownership — not confirmed in the source.
Quick glossary
- Chapter 11: A U.S. bankruptcy process that allows a company to reorganize its debts and operations while continuing to operate under court supervision.
- Restructuring Support Agreement (RSA): A pact between a debtor and one or more stakeholders outlining agreed steps for a financial restructuring, often including asset sales or reorganization terms.
- Manufacturer: A company that produces goods, often under contract for another brand or company; in hardware businesses this can include assembly and component sourcing.
- Revenue: The total income a company generates from its normal business activities, typically reported for set accounting periods.
Reader FAQ
Will Picea Robotics take ownership of iRobot?
iRobot has signed a restructuring support agreement calling for Shenzhen-based Picea Robotics to acquire the company, but completion details were not provided in the source.
Will iRobot continue operating during Chapter 11?
The company said operations will run as usual during the Chapter 11 process and it intends to meet commitments to staff, vendors and creditors.
Did the failed Amazon deal contribute to iRobot's situation?
iRobot cited the 2024 collapse of the proposed $1.7 billion acquisition by Amazon as one of the factors in its financial difficulties.
Are employee layoffs expected during this process?
iRobot previously said it reduced headcount by about half in a prior reorganization; future staffing outcomes were not confirmed in the source.
PERSONAL TECH 44 Roomba maker iRobot gets cleaned out in Chapter 11 Company vacuumed up by its own manufacturer Connor Jones Mon 15 Dec 2025 // 13:02 UTC iRobot, the company behind autonomous vacuum…
Sources
- Roomba maker iRobot gets cleaned out in Chapter 11
- Roomba Maker iRobot Files for Bankruptcy, With Chinese …
- Roomba maker iRobot files for bankruptcy, pursues …
- iRobot CEO Says Bankruptcy Exposed New Rival
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