Roomba robot vacuum cleaner maker, iRobot files for bankruptcy, seeks manufacturer buyout

iRobot Corporation, the US technology company responsible for the hugely popular Roomba robot vacuum cleaner, has initiated a pre-packaged Chapter 11 bankruptcy process. The firm announced the filing on Sunday as part of a restructuring plan to be acquired by its secured lender and primary contract manufacturer, Shenzhen Picea Robotics Co., Ltd.

The voluntary filing, submitted in the district of Delaware, United States, is a pivotal step intended to reinforce iRobot’s financial standing and provide a stable basis for continued operations. For some time, the firm has faced considerable financial pressures, which were exacerbated after a $1.4 billion acquisition bid by Amazon was called off earlier in 2024 over antitrust concerns.

The restructuring involves a support agreement under which the Roomba maker will be taken over through a court-supervised process. This transaction is specifically designed to facilitate the company’s continuing operations and ensure it can sustain its product development and customer support systems.

Under the terms of the acquisition, iRobot is set to become a private company wholly owned by Picea. This development means the firm’s common stock will be delisted from the NASDAQ stock market or any other national exchange. Consequently, existing shareholders of the common stock are anticipated to receive no value for their investment, as all outstanding equity interests will be cancelled as part of the reorganisation.

The company has moved to reassure consumers and partners that operations, app functionality, customer programmes, and supply chain relationships will remain uninterrupted throughout the bankruptcy period. The pre-packaged Chapter 11 process is expected to be completed by February 2026.