iRobot Swept Into Bankruptcy
upstart writes:
December 15, 2025 - iRobot, the Massachusetts-based company behind the Roomba robot vacuum, has filed for Chapter 11 bankruptcy protection in the United States and struck a deal that will hand ownership to its primary contract manufacturer and secured lender, Shenzhen PICEA Robotics (Picea). The company says it expects no interruption to Roomba devices, app services, customer programs, or product support as the court-supervised restructuring plays out. [Reuters]
The move caps a steep reversal for one of consumer robotics' best-known pioneers. Once buoyed by pandemic-era demand and the near-household-name status of "Roomba," iRobot has struggled under the weight of pricing pressure, rising costs, and fierce competition in a robot vacuum market that has become crowded with feature-rich alternatives-many of them coming from China-based brands and supply chains.
Unlike a messy bankruptcy that drags on for years, iRobot says it has launched a pre-packaged Chapter 11 process in Delaware, backed by a Restructuring Support Agreement with Picea. In plain terms, much of the plan has been negotiated in advance, with the goal of moving quickly through court approval and emerging with a cleaner balance sheet. iRobot's own timeline targets completion by February 2026. [iRobot]
iRobot's CEO Gary Cohen framed the deal as a continuity play-designed to keep products supported and the business operating-while pairing iRobot's brand and product design experience with Picea's manufacturing scale.
The most consequential detail for investors is also the most blunt: iRobot says common shareholders should expect a total loss if the Chapter 11 plan is approved. After the transaction closes, iRobot plans to become a private company wholly owned by Picea, and its shares will no longer be listed on Nasdaq.
Reuters reports that under the bankruptcy plan Picea will take 100% of iRobot's equity and cancel the remaining balance of a $190 million loan from 2023, plus additional debt tied to the companies' manufacturing relationship. Reuters also reported iRobot expects other creditors and suppliers to be paid in full.
iRobot's Chapter 11 filing is the culmination of pressures that have been building for years-accelerated by a rapidly evolving robot vacuum category. Reuters cited iRobot's bankruptcy filings describing how increased competition from lower-priced rivals eroded profits and forced price cuts while iRobot continued investing in technology upgrades.
Read more of this story at SoylentNews.