Roomba Maker iRobot Files for Bankruptcy, Acquired by Chinese Supplier
Published 15 December 2025
Highlights
- iRobot, the maker of Roomba, has filed for Chapter 11 bankruptcy and will be acquired by its main supplier, Picea Robotics.
- The company faced financial strain due to US-China trade tariffs and competition from cheaper rivals, leading to a significant drop in its market valuation.
- iRobot's shares fell by over 13% on Nasdaq following the bankruptcy announcement, and its current valuation stands at approximately $140 million.
- The acquisition by Picea, a Chinese firm, raises potential concerns over data privacy and surveillance.
- Despite the bankruptcy, iRobot assures that its app, supply chains, and product support will remain unaffected.
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Rewritten Article
Roomba Maker iRobot Files for Bankruptcy, Acquired by Chinese Supplier
iRobot, the renowned US company behind the Roomba robotic vacuum cleaner, has filed for Chapter 11 bankruptcy protection and will be acquired by its primary supplier, Picea Robotics. This strategic move comes as iRobot grapples with financial challenges exacerbated by intense competition and trade tariffs.
Financial Struggles and Market Pressures
Founded in 1990 by MIT roboticists, iRobot initially focused on defense and space technology before launching the Roomba in 2002. Despite holding a significant market share in the US and Japan, the company has faced mounting financial pressures. The imposition of US import duties, particularly a 46% tariff on goods from Vietnam, has inflated costs by $23 million this year alone. This, coupled with the rise of cheaper competitors, has severely impacted iRobot's earnings, leading to a drastic decline in its valuation from $3.56 billion in 2021 to around $140 million today.
Acquisition by Picea Robotics
Under the pre-packaged bankruptcy plan, Shenzhen-based Picea Robotics will take ownership of iRobot. Picea, with its extensive manufacturing and R&D facilities in China and Vietnam, aims to leverage iRobot's innovative consumer-driven design to advance smart home technology. Gary Cohen, iRobot's CEO, expressed optimism about the merger, stating it would strengthen the company's financial position and future prospects.
Concerns and Assurances
The acquisition by a Chinese firm has reignited concerns over data privacy, particularly regarding the Roomba's mapping features. Previously, Amazon's attempt to acquire iRobot raised similar fears. However, iRobot has assured stakeholders that the bankruptcy filing will not disrupt its app, supply chains, or product support. The company remains committed to fulfilling its obligations to employees and creditors.
Impact on the Market
The announcement of the bankruptcy and acquisition led to a 13% drop in iRobot's shares on the Nasdaq. The company has lost about 45% of its market value this year, reflecting the broader challenges faced by the consumer robotics industry.
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Scenario Analysis
The acquisition of iRobot by Picea Robotics could reshape the landscape of the smart home technology market. With Picea's manufacturing prowess and iRobot's innovative designs, the combined entity may introduce new products that could redefine consumer expectations. However, the involvement of a Chinese company might prompt regulatory scrutiny, particularly concerning data privacy and security. As the global market for robotic vacuums continues to grow, iRobot's restructuring could serve as a case study for other companies navigating similar challenges in a competitive and tariff-laden environment.
iRobot, the renowned US company behind the Roomba robotic vacuum cleaner, has filed for Chapter 11 bankruptcy protection and will be acquired by its primary supplier, Picea Robotics. This strategic move comes as iRobot grapples with financial challenges exacerbated by intense competition and trade tariffs.
Financial Struggles and Market Pressures
Founded in 1990 by MIT roboticists, iRobot initially focused on defense and space technology before launching the Roomba in 2002. Despite holding a significant market share in the US and Japan, the company has faced mounting financial pressures. The imposition of US import duties, particularly a 46% tariff on goods from Vietnam, has inflated costs by $23 million this year alone. This, coupled with the rise of cheaper competitors, has severely impacted iRobot's earnings, leading to a drastic decline in its valuation from $3.56 billion in 2021 to around $140 million today.
Acquisition by Picea Robotics
Under the pre-packaged bankruptcy plan, Shenzhen-based Picea Robotics will take ownership of iRobot. Picea, with its extensive manufacturing and R&D facilities in China and Vietnam, aims to leverage iRobot's innovative consumer-driven design to advance smart home technology. Gary Cohen, iRobot's CEO, expressed optimism about the merger, stating it would strengthen the company's financial position and future prospects.
Concerns and Assurances
The acquisition by a Chinese firm has reignited concerns over data privacy, particularly regarding the Roomba's mapping features. Previously, Amazon's attempt to acquire iRobot raised similar fears. However, iRobot has assured stakeholders that the bankruptcy filing will not disrupt its app, supply chains, or product support. The company remains committed to fulfilling its obligations to employees and creditors.
Impact on the Market
The announcement of the bankruptcy and acquisition led to a 13% drop in iRobot's shares on the Nasdaq. The company has lost about 45% of its market value this year, reflecting the broader challenges faced by the consumer robotics industry.
What this might mean
The acquisition of iRobot by Picea Robotics could reshape the landscape of the smart home technology market. With Picea's manufacturing prowess and iRobot's innovative designs, the combined entity may introduce new products that could redefine consumer expectations. However, the involvement of a Chinese company might prompt regulatory scrutiny, particularly concerning data privacy and security. As the global market for robotic vacuums continues to grow, iRobot's restructuring could serve as a case study for other companies navigating similar challenges in a competitive and tariff-laden environment.
