Roomba’s Maker, iRobot, Files for Bankruptcy

iRobot, the company best known for its Roomba robotic vacuum cleaners, recently filed for Chapter 11 bankruptcy protection as part of a court-supervised restructuring plan after decades as a public company. The filing comes amidst mounting financial pressures from heavy competition, rising costs, significant debt, and a failed acquisition deal that left the company without a crucial lifeline. Under the restructuring plan, iRobot will be taken private and acquired by its primary contract manufacturer, Picea Robotics, which will assume full ownership and help stabilize operations moving forward. 

One of the main factors driving iRobot into bankruptcy was intense competition. Once a pioneer in home robotics, iRobot has seen its market share erode as lower priced rivals from China, such as Ecovacs and Roborock, gained ground by offering similar or better products at cheaper prices. To defend its position, iRobot had to cut prices and invest heavily in research and product upgrades, which squeezed its profit margins and reduced overall profitability. 

External economic pressures worsened the company’s situation. New U.S. tariffs including a high levy on imports manufactured in Vietnam where many Roombas are built added tens of millions in extra costs, making it harder to compete on price and plan for future growth. In 2025 alone, revenue in the United States dropped by 33%, leaving the company with dwindling cash reserves and no additional sources of capital to fund its operations. These cost increases, combined with uncertainty around long term tariff policy, undermined confidence and planning across the business. 

Another significant blow was the collapse of a potential acquisition by Amazon. In 2022 and 2023, Amazon pursued a roughly $1.4–$1.7 billion deal to buy iRobot, which many saw as a way to secure investment and integrate the Roomba brand into a larger smart-home ecosystem. However, regulators in the European Union and the U.S. blocked or delayed the deal, and it was ultimately abandoned in early 2024. Without that support and after taking on a large loan while waiting for the merger, iRobot found itself with a hefty debt burden that it struggled to manage when the acquisition fell through.

iRobot’s bankruptcy reflects a combination of competitive pressures, rising costs, and financial strain that undermined its ability to remain profitable and financially stable in a rapidly evolving market. While the company’s iconic Roomba products will continue to be supported and developed under new ownership, the bankruptcy marks the end of iRobot’s time as an independent public company and highlights the challenges legacy tech brands face in staying ahead of global competition and economic headwinds.