Why Did iRobot File for Chapter 11 Bankruptcy Protection?

According to a company press release, iRobot, widely known as the pioneer of robot vacuum cleaners, filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware on December 14, 2025.

The filing followed a restructuring support agreement with its main supplier and lender, Shenzhen PICEA Robotics Co., and its wholly owned subsidiary, Santrum Hong Kong Co. Under this agreement, the two companies will take control of iRobot.

The announcement stated that Shenzhen PICEA Robotics will acquire 100 percent of iRobot’s equity and that iRobot will be delisted from the Nasdaq Stock Market. If the court approves the restructuring plan, all existing and outstanding equity interests will be canceled. Common shareholders are expected to lose their entire investment with no recovery.

iRobot said the restructuring will allow the company to continue operating as a going concern, meet its commitments to employees, and pay suppliers and other creditors in full and on time throughout the court supervised process. Chief Executive Officer Gary Cohen described the move as a critical milestone to secure the company’s long term future.

Founded in 1990 by three engineers from the Massachusetts Institute of Technology, iRobot launched the Roomba robot vacuum in 2002. At its peak, the company held more than 80 percent of the global market and was the dominant player in consumer robotics. When it went public on Nasdaq in 2005, its market value exceeded 2 billion US dollars and it was often referred to as the Apple of consumer robotics.

Over more than 30 years, iRobot sold more than 50 million robots worldwide. However, starting in 2021, rising supply chain pressures and intensifying competition led to a sustained decline in profitability.

In 2022, Amazon agreed to acquire iRobot for about 1.7 billion US dollars in cash, but the deal faced antitrust scrutiny from the US Federal Trade Commission and the European Union. The collapse of this acquisition removed a major source of potential external funding. In October 2025, iRobot’s last round of potential sale negotiations also failed.

Earlier this December, iRobot warned that it could face bankruptcy after years of declining earnings. Around the same time, Shenzhen PICEA Robotics acquired most of iRobot’s debt from US investment firm Carlyle Group Inc. iRobot also disclosed that it had been in talks regarding new capital injections and debt repayment before filing for bankruptcy protection.