iRobot, the maker of Roomba, has finally filed for bankruptcy and will enter into a restructuring agreement with a major Chinese supplier to transfer control of the company.

iRobot , known for its Roomba robot vacuum cleaner, has announced a 'strategic transaction to advance its long-term growth plans' and a reorganization plan under federal bankruptcy law. The Chinese vacuum cleaner manufacturer will acquire all of iRobot's shares, allowing the company to continue operating after fully repaying its vendors and debtors.

iRobot Announces Strategic Transaction to Drive Long-Term Growth Plan
https://www.prnewswire.com/news-releases/irobot-announces-strategic-transaction-to-drive-long-term-growth-plan-302641744.html

Robot Vacuum Roomba Maker Files for Bankruptcy After 35 Years - Bloomberg
https://www.bloomberg.com/news/articles/2025-12-15/robot-vacuum-roomba-maker-files-for-bankruptcy-after-35-years

iRobot had warned of possible bankruptcy following years of declining revenue. In 2022, Amazon signed an agreement to acquire iRobot, but the deal was canceled after failing to obtain regulatory approval due to concerns that the acquisition would limit competition in the robot vacuum cleaner market. Following the aborted acquisition, iRobot's then-chairman and CEO resigned, and the company implemented a restructuring plan that included laying off 31% of its workforce and cutting research and development spending by approximately 30%.

Amazon cancels iRobot acquisition, iRobot lays off 31% of employees and CEO resigns - GIGAZINE

Subsequently, in its financial reports for the fourth quarter (October to December) and full year 2024, iRobot expressed 'significant doubts about its ability to continue in business.' The reports revealed that revenues were down approximately 50% year-on-year in the fourth quarter and 24% year-on-year for the full year. Although the company's losses had been reduced by reducing its workforce and significantly reducing manufacturing costs, the reports stated that there were significant doubts about its ability to continue in business.

Roomba manufacturer iRobot faces a major crisis of survival, warning of 'serious doubts' about its ability to continue business after Amazon abandons its acquisition of approximately 250 billion yen - GIGAZINE

On December 14, 2025, iRobot announced a 'strategic transaction to advance its long-term growth plans.' The announcement revealed that Shenzhen PICEA Robotics , iRobot's secured creditor and a major supplier with operations in China and Vietnam, would acquire iRobot through Chapter 11 bankruptcy proceedings .

Shenzhen PICEA Robotics will acquire 100% of iRobot's equity, which will reduce iRobot's debt ratio and allow it to continue business operations as usual and continue product development.

'Today's announcement marks a critical milestone in securing iRobot's long-term future. This transaction strengthens our financial position and enables us to provide business continuity to our consumers, customers and partners,' said iRobot CEO Gary Cohen. 'By combining iRobot's innovation, consumer-driven design and R&D with PICEA's history of innovation, manufacturing and technical expertise, we believe iRobot is poised to create the next generation of smart home robots.'