Roomba maker files for bankruptcy and is acquired by Chinese supplier

iRobot to be acquired by Shenzhen PICEA Robotics after facing series of challenges

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CX Network
12/15/2025

iRobot, the maker of original robot vacuum, Roomba, filed for Chapter 11 bankruptcy protection on Sunday December 14, in Delaware, as part of a Restructuring Support Agreement (RSA) with Chinese suppliers that have now acquired the company.

In a press release, iRobot called the deal a “strategic transaction to drive long-term growth”, which it said positions it to “continue delivering trusted robotics and smart home devices to consumers worldwide.” It expects to complete the pre-packaged chapter 11 process by February 2026, handing ownership to Shenzhen PICEA Robotics.

“Today's announcement marks a pivotal milestone in securing iRobot's long-term future," said iRobot CEO, Gary Cohen. “The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners. Together, we will work to continue advancing the industry-leading Roomba robots and smart home technologies that have defined the iRobot brand for more than three decades.

"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,” he added.

Sunday’s bankruptcy filing comes only weeks after reports that the company faced growing “market headwinds,” production delays and disruptions to shipping. It also carried huge debts following a 2023 loan that was used to refinance its operations while EU regulations investigated a proposed takeover from Amazon.

The RSA allows iRobot to continue normal operations, including its commitments to employees and payments to vendors and other creditors. iRobot’s release also said it provides a path forward to “enhance financial stability, reduce debt, and support continued innovation across iRobot's leading portfolio of robotics and smart home devices”.

Crucially, it also takes the company private, which means it will no longer be listed on the Nasdaq Stock Exchange or any other national stock exchange. On the one hand this will bring “more stability to the balance sheet”, however, reports so far state investors will see their shares cancelled, and all investments lost.

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What bankruptcy means for iRobot customers

iRobot has pledged that nothing will change for its customers, who will still be able to access the app, product support, and customer programs. iRobot’s global partnerships and supply chain relationships will also be unaffected.

The company said it will be able to continue to pursue its product development roadmap and maintain its global footprint, according to Sunday’s announcement. It counts 7,000 employees worldwide and as of 2021 had sold more than 40 million home robots worldwide.

However, customer satisfaction has not been great. Despite the Roomba being popular with critics, actual customers of the firm persistently post negative reviews online, with frustrations focused on the app, customer support, and fixing problems that arise.

In 2021, a software update led customers to complain en mass about “drunk” devices that would spin uncontrollably, bump into furniture, have difficulty charging, and move in “strange directions.”

Roomba, a history

As the first “robot vacuum” developer and manufacturer, iRobot was ahead of its time, bringing its expertise in military-grade robotics to people’s home to do something as simple as clean.

It was founded in 1990 by three members of the Artificial Intelligence Lab at Massachusetts Institute of Technology (MIT) and its early robots were used for military and scientific purposes. They have been deployed by US Forces in conflict, brought the first self-navigating FDA-approved remote presence robots to hospitals, and also found harmful subsea oil in the Gulf of Mexico. In science, the robots were used to explore the Great Pyramid of Giza and iRobot even inspired the first Micro Rovers used by NASA.

iRobot stepped into consumer electronics with the 2002 launch of Roomba, which took the market by storm and was followed in 2013 with the Braava Floor Mopping Robot, among other products. In 2017 the addition of voice capabilities through Amazon’s Alexa took the customer experience to new heights and the company seemed unstoppable.

However, Amazon’s proposed takeover in 2019 was blocked by regulators and, despite a relatively short-term uptick in sales during the Covid-19 pandemic- which saw the company’s value soar to at $3.56bn in 2021 – iRobot’s fortunes started to change. It was faced with an army of cheaper competitors and more recently, 46 percent tariffs imposed by the US on goods from Vietnam.

Although it tried to compete with a suite of new products, in January 2024 the firm laid off 31 percent of its staff and its then CEO Colin Angle stepped down. In December 2025, it filed for bankruptcy as part of its RSA with Shenzhen PICEA Robotics and is now valued at around $140 million.

What happened between iRobot, Alexa and Amazon

In 2019, iRobot said it was “building the future of the voice-enabled smart home” with Amazon’s Alexa.

At the most basic level, new voice capabilities allowed owners to initiate basic functions with their Roomba or Braava, telling the devices to start or stop cleaning, or dock at a charging station. Through Alexa it was also possible to command multiple units both by with a single voice command, such as “Alexa, tell Roomba to vacuum and Braava to mop the kitchen”.

It was an integral part of Amazon’s vision for a voice-controlled smart home environment that would offer natural interaction, and that vision was shared by iRobot. Chief technology officer Chris Jones said in 2019 that the integration with Alexa paved the way for future integration and coordination of actions with other smart home devices, beyond the iRobot portfolio.

“We want our products to become a part of the customer’s everyday life,” the iRobot CTO said. “Using them should be an engaging, intuitive experience. Thanks to voice technology and our work with Alexa, it is.”

In 2022, Amazon was poised to acquire iRobot in a US$1.7 billion deal, but was blocked by the European Union's competition watchdog. It said the deal would make it difficult for other vacuum-makers to compete, especially as Roombas were sold via Amazon.com, among other places. Within hours of the decision iRobot’s shares were down 40 percent.

In 2023, the UK regulator said the deal could go ahead, but further regulatory barriers in the US finally put an end to the takeover in 2024. The experience left its mark – iRobot took on a huge loan to refinance its operations while a European competition investigation stalled the Amazon deal.

The future of iRobot

Despite the problems faced by iRobot, the future of robotic home appliances remains relatively bright.

iRobot’s acquisition by a Chinese company could well bring down the cost of the product, allowing it to compete on price. But as the reviews demonstrate, buyers want great service just as much as a great product. They also want confidence that data gathered by the devices about the layout of their homes will be safe and, and without addressing these points, iRobot could still face an uncertain future.