iRobot files Chapter 11 as Shenzhen Picea moves to take control

Roomba maker iRobot files pre-packaged Chapter 11 in Delaware as Shenzhen Picea moves to take control and cancel over $260m in debt.

iRobot Corporation shares dropped more than 82% in premarket trading on December 15, 2025, after the Roomba manufacturer filed for Chapter 11 bankruptcy protection, according to the company’s announcement.

iRobot files for bankruptcy

The company filed for bankruptcy in the District of Delaware after entering into a Restructuring Support Agreement with its secured lender and primary contract manufacturer, Shenzhen PICEA Robotics and Santrum Hong Kong, according to court documents.

The filing represents a decline from a valuation of $3.56 billion in 2021 to approximately $140 million currently, according to market data.

iRobot commenced a pre-packaged Chapter 11 bankruptcy process in Delaware on Monday, with the company projecting completion of the restructuring by February 2026, according to the filing. Under the Restructuring Support Agreement, Picea Robotics will acquire 100% of iRobot’s equity through a court-supervised process while canceling approximately $190 million in debt from a 2023 loan and an additional $74 million owed under the manufacturing agreement, the company stated.

The bankruptcy filing indicates that iRobot has estimated assets between $100 million and $500 million, with liabilities in the same range, according to court documents.

iRobot stated that operations will continue without disruption to app functionality, customer programs, global partnerships, supply chain relationships, or product support. The company, which employs 274 people and maintains headquarters in Bedford, Massachusetts, stated that other creditors and suppliers will be paid in full according to the bankruptcy plan.

The company was founded in 1990 by three MIT roboticists and launched the Roomba robotic vacuum in 2002, according to company records.

iRobot generated approximately $682 million in total revenue in 2024, according to financial statements. The company faced competition from Chinese rivals including Ecovacs Robotics, resulting in price reductions and investments in technological upgrades, according to industry reports.

U.S. tariffs imposed a 46% levy on imports from Vietnam, where iRobot manufactures vacuum cleaners for the U.S. market, adding $23 million in costs in 2025, according to the company’s financial disclosures.

Amazon’s proposed $1.4 billion acquisition of iRobot terminated due to a European competition investigation, according to previous announcements. The company maintained approximately 42% of the U.S. market share and 65% of the Japanese market share for robotic vacuum cleaners, according to market research data.