iRobot Files For Bankruptcy: What It Means For Roomba Owners

by Aaron Leong — Monday, December 15, 2025, 09:57 AM EDT

The writing has long been on the wall, but finally, the maker of the synonymous Roomba vacuum, iRobot Corporation, has filed for Chapter 11 bankruptcy as a "strategic transaction" intended to secure the company’s long-term future. Let's find out what that also means for both future customers and current owners.

The filing, initiated in Delaware, is part of a pre-packaged restructuring plan that would see the company acquired by its primary contract manufacturer and secured lender, Picea Robotics. The agreement is designed to deleverage iRobot’s balance sheet (with some estimating debt at $480 million), providing financial stability and the capital needed to pursue its product development roadmap.

Assuming the plan is approved by the court, Shenzhen PICEA Robotics Co., Ltd. is expected complete the acquisition by February 2026. iRobot CEO Gary Cohen stated that the transaction will "strengthen our financial position and will help deliver continuity for our consumers, customers, and partners," assuring the public that the Roomba brand will continue innovating under its new ownership.

This Chapter 11 petition comes less than a year after the collapse of Amazon’s planned $1.7 billion acquisition of iRobot. That likely business-saving deal fell apart earlier in the year following strong resistance from European regulators who threatened a veto on anti-competitive grounds. With that lifeline severed, and facing an increasingly cutthroat market, iRobot's financial position continued to deteriorate, leading the company to issue a public warning earlier in 2025 expressing substantial doubt about its ability to continue operating.

The pressures leading to bankruptcy are partly rooted in intense competition that eroded iRobot's dominance in the robotic vacuum space it basically created in 2002. Rivals like Roborock, Dreame, and Ecovacs (often offering superior technology at lower prices) significantly shrunk iRobot's market share, particularly in the post-pandemic environment. Additionally, the company was reportedly hit by tariffs on products manufactured in Vietnam (destined for the U.S. market), further straining its bottom line.

For current owners/buyers, the company promises that the shift will be seamless. The company has filed customary motions with the court to ensure business continuity, asserting that there will be "no anticipated disruption to its app functionality, customer programs, global partners, supply chain relationships, or ongoing product support." Roomba vacs are expected to continue cleaning normally, with uninterrupted access to replacement parts and customer service.

However, the financial restructuring is brutal for existing equity investors. The restructuring support agreement explicitly states that current common stockholders will not receive any equity in the reorganized company and will experience a total loss on their investment once the chapter 11 plan is approved by the court.

That said, there are some sweet holiday deals on Roomba (because, you know, you like living on the edge) and some competing products: