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Roomba Maker iRobot Files for Bankruptcy, Acquired by Chinese Manufacturer
The once-dominant U.S. robot vacuum pioneer, iRobot, has filed for bankruptcy, marking a significant shift in the smart home appliance market. The maker of the popular Roomba vacuum cleaner will be acquired by its primary Chinese manufacturer, Shenzhen Picea Robotics, following years of financial struggles, intense foreign competition, and the fallout from a failed merger with Amazon.
Founded in 1990 by researchers from the Massachusetts Institute of Technology, iRobot initially focused on developing robots for military applications, archaeological exploration, and environmental monitoring. The company later revolutionized home cleaning with the introduction of its Roomba robot vacuum, quickly becoming a household name.
However, in recent years, iRobot has faced mounting financial pressure. The company struggled to compete with a surge of more affordable smart vacuums from international rivals, particularly those from China. Compounding these challenges, iRobot also grappled with substantial debt and the impact of U.S. import tariffs.
A proposed $1.4 billion acquisition by Amazon fell through last year due to antitrust concerns from European and U.S. regulators. This left iRobot with a $200 million loan it had secured to navigate the merger review process, further exacerbating its financial woes.
The company has been reporting significant losses throughout the year, with its latest quarterly revenue in the U.S. declining by 33%. In March, iRobot had already signaled potential bankruptcy, citing concerns over consumer demand, competitive pressures, and tariff costs.
According to its bankruptcy filing, iRobot owes $3.4 million to U.S. Customs and Border Protection in unpaid tariffs, largely due to its manufacturing operations in Vietnam, which faced new import fees under former President Trump’s trade policies. The company also owes nearly $100 million to Shenzhen Picea Robotics, the supplier now taking over the firm.
As part of the bankruptcy proceedings, iRobot will transition into a private entity and become a subsidiary of Shenzhen Picea Robotics. Picea Robotics also manufactures competing household devices under its own 3i brand and lists other notable brands like Shark and Anker (makers of Eufy vacuums) on its website. This acquisition aims to ensure the continued operation and support for existing Roomba devices.