The US company behind the Roomba robot vacuum cleaner has filed for Chapter 11 bankruptcy protection and agreed to be taken over by one of its Chinese suppliers, Picea Robotics.
iRobot, which pioneered consumer robot vacuums in the early 2000s, said the deal with a Picea subsidiary forms part of a restructuring plan aimed at stabilising its finances. The company has struggled in recent years due to supply chain disruptions, rising competition from cheaper rivals and weakening demand after the pandemic boom.
Chief executive Gary Cohen said combining iRobot’s design and research strengths with Picea’s manufacturing and technical expertise would position the company for the next phase of smart home robotics.
The takeover follows the collapse of Amazon’s proposed $1.4bn acquisition of iRobot in 2024 after opposition from EU competition regulators. Although iRobot received $94m in compensation, much of it was used to cover fees and repay debt, part of which was later acquired by Picea.
The deal may revive privacy concerns, as past takeover talks raised fears over access to detailed home-mapping data generated by Roomba devices. iRobot said the bankruptcy process would not disrupt product support, its app or supply chains.
Founded in 1990 by MIT roboticists, iRobot was valued at more than $3bn in 2021 but is now worth about $137m after posting a net loss of $145.5m last year. Shares fell more than 13% following the announcement.
