iRobot Files for Bankruptcy and Announces Acquisition by Chinese Manufacturing Partner
iRobot, the maker of Roomba, has filed for Chapter 11 bankruptcy and entered an agreement to be acquired by its manufacturing partner, Picea. Following a failed Amazon merger and mounting debt, this deal marks the end of iRobot as a public company.
iRobot, the pioneer behind the iconic Roomba robot vacuum, officially filed for Chapter 11 bankruptcy protection on [December 14, 2025]. In a simultaneous announcement, the company revealed it has entered into a definitive agreement to be acquired by its primary manufacturing partner and secured lender, Shenzhen PICEA Robotics Co., Ltd. (Picea).
This strategic move marks the end of iRobot’s independent run as a public company, following a year of intense financial headwinds and a collapsed merger with Amazon.
The Acquisition Deal
Under the terms of the restructuring agreement, Picea will acquire 100% of iRobot’s equity. The transaction is designed to stabilize the company's finances by removing a massive debt burden. As part of the deal, iRobot shares (NASDAQ: IRBT) will be removed from stock exchanges, and the company will transition into a private entity wholly owned by Picea.
In a press release via iRobot Investor Relations, CEO Gary Cohen described the transaction as a "pivotal milestone" intended to secure the company's long-term future. However, the company explicitly noted that current holders of common stock are expected to experience a total loss and will not receive any recovery on their investments.
By the Numbers: A Financial Decline
The decision to file for bankruptcy comes after months of mounting losses and dwindling cash reserves.
- Stock Plummet: By [December 19, 2025], iRobot’s stock price had fallen to approximately $0.47, representing a loss of roughly 85% of its value throughout 2025.
- Debt Load: Data analyzed by The Robot Report indicates that as of late 2025, iRobot owed Picea approximately $352 million, a significant portion of which was past due.
- Revenue Drop: According to financial analysis by Vacuum Wars, the company’s third-quarter earnings report released on [November 6, 2025] showed revenue of $145.8 million, a nearly 25% decline compared to the same period the previous year.
The Aftermath of the Failed Amazon Deal
Much of the company's recent instability can be traced back to the termination of its planned acquisition by Amazon. The $1.7 billion deal was mutually called off in [January 2024] due to insurmountable regulatory hurdles in the European Union.
Following the deal's collapse, iRobot initiated a series of aggressive restructuring efforts, including reducing its workforce by 31% immediately after the deal failed, followed by another round of cuts affecting 105 employees later in 2024.
What This Means for Consumers
Despite the corporate upheaval, iRobot has assured customers that daily operations will continue without interruption. Warranties, customer service, and repairs will remain active, and the iRobot Home App will continue to function normally. The company anticipates completing the Chapter 11 restructuring process by early 2026.
