Roomba maker iRobot gets cleaned out in Chapter 11

Steven

Roomba maker iRobot gets cleaned out in Chapter 11

Summary

iRobot, maker of the Roomba robot vacuum, has filed for Chapter 11 bankruptcy protection and entered a restructuring support agreement (RSA) that would see its primary manufacturer, Shenzhen-based Picea Robotics, acquire the company.

Operations are expected to continue during the Chapter 11 process; iRobot says it will meet obligations to staff, vendors and creditors. CEO Gary Cohen framed the deal as securing iRobot’s long-term future by combining iRobot’s R&D and design with Picea’s manufacturing and technical strengths.

The filing follows years of declining sales that accelerated from 2023. For the quarter ending 27 September 2025 iRobot reported revenues of $145.8m, a fall of $47.6m (24.6%) year-on-year. The company told investors it faced weaker consumer spending, production delays, shipping disruptions and tariff-driven cost pressures.

iRobot disclosed it owed Picea $158.3m as of 31 October, with $29.1m past due. The collapse of Amazon’s planned $1.7bn acquisition in 2024 and an outstanding $200m three-year loan from the Carlyle Group (most of which remains unpaid) also feature in its financing woes. The company previously halved headcount and reorganised operations in attempts to stabilise finances.

Key Points

  • iRobot has filed for Chapter 11 and initiated an RSA for full acquisition by Picea Robotics (Shenzhen).
  • Operations will continue during restructuring; the company says it will meet commitments to staff, vendors and creditors.
  • Quarterly revenue (ending 27 Sep 2025): $145.8m — a 24.6% decline year-on-year.
  • iRobot owes its manufacturer Picea $158.3m, with $29.1m past due as of 31 Oct.
  • Key pressures: lower consumer sentiment/spending, production delays, shipping disruptions, tariffs and rising competition.
  • Collapse of Amazon’s 2024 buyout and an outstanding Carlyle loan have exacerbated the firm’s financial strain.
  • Company cuts included halving headcount and reorganising to reduce costs.

Context and relevance

This is a notable development for the smart-home and robotics markets. iRobot’s move from independent consumer brand to being acquired by its contract manufacturer underscores the power shift in hardware supply chains — manufacturers with deep production and technical capability can end up owning the IP and brands they once built for.

For suppliers, retailers and competing device makers this could affect supply dynamics, pricing and innovation incentives. Investors and creditors will watch how the Chapter 11 process handles debt, outstanding loans and vendor claims. For consumers, the immediate impact should be limited while operations continue, but longer-term product strategy, support and regional supply could shift under new ownership.

Why should I read this?

Because Roomba isn’t just another gadget — it’s a long-standing smart-home brand. If you buy, sell, build or supply connected home kit, this matters. It shows how fragile hardware brands can be when sales slow and how contract manufacturers can end up owning the names they make. Short version: big implications for supply chains, IP and the smart-home market — and we’ve done the skim for you.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2025/12/15/irobot_chapter_11/