From market leader to survival mode, US-based iRobot files for Chapter 11 protection, seeking a takeover by its Chinese contract manufacturer after years of falling sales.
iRobot, the maker of Roomba robotic vacuum cleaners, has filed for Chapter 11 bankruptcy protection in the United States as it seeks to restructure its finances and secure a buyer. The company said the move is aimed at cutting debt and enabling a transition to private ownership.
The Massachusetts-based firm confirmed it has reached an agreement to be acquired by its main contract manufacturer and secured lender, Shenzhen Picea Robotics Co. The proposed deal will be carried out through a court-supervised process.
If approved, Picea would take full ownership of iRobot. The company expects the restructuring to be completed by February 2026.
iRobot has faced prolonged financial pressure following a sharp slowdown in demand and intensifying competition from overseas manufacturers. Supply chain disruptions have also weighed on performance. The company said the transaction would stabilise its balance sheet and support future operations.
The bankruptcy filing follows several difficult years for the business. Revenue peaked at nearly $1.6 billion in 2021, boosted by strong pandemic-era demand for home cleaning devices. Sales have since fallen sharply. By the end of 2024, annual revenue had dropped to about $682 million.
An attempted acquisition by Amazon had once offered hope. The technology giant agreed to buy iRobot for $1.7 billion in 2022. However, the deal collapsed in early 2024 after regulatory concerns were raised in the European Union.
Earlier this year, iRobot warned investors that it might not be able to continue as a going concern. The board began exploring options to sell the business or refinance its debt. The company also consolidated production under a single manufacturing partner, Picea, with facilities in China and Vietnam.
Under the proposed restructuring, iRobot’s shares would be delisted from the Nasdaq exchange. Existing shareholders would receive no equity in the reorganised company.
iRobot said it will continue operating normally during the bankruptcy process. Customer services, software platforms and supply chain operations are expected to remain unaffected. The company reported total assets and liabilities of about $480 million, with Picea listed as its largest creditor.
