The maker of Roomba, iRobot, has initiated a pre-packaged Chapter 11 bankruptcy in Delaware, with Shenzhen Picea aiming to gain control and eliminate over $260 million in debt.
Summary
- iRobot has kickstarted a pre-packaged Chapter 11 bankruptcy in Delaware, targeting completion by February 2026.
- Shenzhen Picea Robotics will acquire full equity and cancel roughly $264 million in combined debt.
- All operations, applications, support, and supplier relationships are expected to continue and be fully compensated under the restructure plan.
On December 15, 2025, iRobot Corporation’s shares plummeted over 82% in premarket trading following the announcement of its Chapter 11 bankruptcy proceedings.
iRobot files for bankruptcy
The company filed for bankruptcy in the District of Delaware after entering a Restructuring Support Agreement with its secured lender, Shenzhen PICEA Robotics, and primary contract manufacturer, Santrum Hong Kong, as stated in court documents.
This filing marks a significant reduction from a valuation of $3.56 billion in 2021 to an estimated $140 million currently, based on market data.
iRobot launched its pre-packaged Chapter 11 bankruptcy process in Delaware on Monday, anticipating the restructuring will be finished by February 2026. According to the Restructuring Support Agreement, Picea Robotics will obtain 100% equity of iRobot through a court-supervised process while nullifying about $190 million in debt from a 2023 loan and an additional $74 million owed under a manufacturing agreement, the company revealed.
The bankruptcy filing suggests that iRobot possesses assets estimated between $100 million and $500 million, with liabilities within the same range, as per court documents.
iRobot confirmed that its operations would continue seamlessly, ensuring no interruption to app functionality, customer programs, global partnerships, supply chain interactions, or product support. The company employs 274 individuals and has its headquarters in Bedford, Massachusetts, stating that all other creditors and suppliers will be fully reimbursed according to the bankruptcy proposal.
Founded in 1990 by three roboticists from MIT, iRobot introduced the Roomba robotic vacuum in 2002, according to internal records.
In 2024, iRobot reported approximately $682 million in total revenue, according to financial statements. The company has faced increasing competition from Chinese rivals, including Ecovacs Robotics, which has led to price reductions and substantial investments in technological advancements, as indicated in industry reports.
U.S. tariffs imposed a 46% duty on imports from Vietnam, where iRobot produces vacuum cleaners for the U.S. market, adding $23 million to costs in 2025, per the company’s financial disclosures.
The proposed $1.4 billion acquisition of iRobot by Amazon fell through due to a European competition investigation, previous announcements stated. The company holds approximately 42% of the U.S. market share and 65% of the Japanese market share for robotic vacuum cleaners, according to market research data.
