Dec 16, 2025
3 min read
The Massachusetts-based company will transfer its business to two Chinese companies
Roomba maker iRobot has filed for bankruptcy and will cease trading in the US
The Massachusetts-based company will transfer its business to two Chinese companies
iRobot, the maker of Roomba vacuum cleaners, can no longer survive on its own.The company, along with several of its subsidiaries, entered voluntary bankruptcy, which allows for the restructuring of its debt under Chapter 11 of the United States bankruptcy code.The restructuring agreement concluded with the Chinese company Shenzhen Picea Robotics and its subsidiary, Santrum Hong Kong, includes the acquisition of 100 percent of the American company.According to Reuters, the Nasdaq delisted company's shares fell 78% in after-hours trading.
iRobot, which has about $190 million in debt, will continue to operate as normal during the bankruptcy and is expected to complete the debt restructuring process by February 2026. The group considers this restructuring agreement "an important step" in strengthening the company's financial base and positioning it for long-term growth.The company has been in financial trouble for several years.
Under the terms of the agreement, Picea, iRobot's leading creditor and manufacturer, will acquire 100% of the company's shares;This will allow the company to continue its operations and improve its financial stability, as well as reduce debt and drive innovation across its portfolio of robotics and smart home devices.
Upon closing of the transaction, iRobot will become a private company wholly owned by Picea and its shares will be delisted from the Nasdaq stock market.Likewise, iRobot expects that if the U.S. District Court for the District of Delaware approves its bankruptcy plan, the company's shareholders will receive no shares of the reorganized company, and shareholders will "experience a complete loss and not recover their investment."
"Today's announcement marks an important milestone in securing iRobot's long-term future," said iRobot CEO Gary Cohen.
The maker of Roomba, which was founded in 1990 and jumped to the stock market in 2005, has warned last March of "significant doubts" about its ability to continue despite uncertainty due to the impact of competing consumer demand, macroeconomic conditions and taxes.The new tariffs in the US have hurt the company, especially the 46% tax on goods from Vietnam, where iRobot makes vacuum cleaners for the US market.The costs have increased the company's costs by $23 million by 2025, while making it difficult to plan for the future, according to iRobot's court documents.
In January 2024, US e-commerce giant Amazon canceled a deal to acquire iRobot, saying the transaction had received no signs of approval from EU regulators, who had warned a few months earlier that the deal could "restrict" competition.
After the operational failure, iRobot announced a restructuring plan aimed at strengthening its financial base and laid off more than 50% of its workforce.
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