iRobot files for Chapter 11 bankruptcy

February 2026 | DEALFRONT | BANKRUPTCY & RESTRUCTURING

Financier Worldwide Magazine

February 2026 Issue

The firm behind the Roomba smart vacuum cleaner, iRobot, has filed for Chapter 11 bankruptcy protection in the US. The company has commenced a pre-packaged Chapter 11 process in the District of Delaware and expects to complete it by February 2026. It says operations will continue during the case without disruption to products, apps or customer support.

Citing stiff competition from Chinese rivals and being hit by tariffs, the company’s sales have been under pressure, forcing iRobot to reduce headcount before the filing. A management shake‑up in early 2024 saw the departure of its co-founder as chief executive. US import duties of 46 percent on goods from Vietnam, where most of iRobot’s US devices are made, increased costs by $23m in 2025. Court documents show iRobot owes almost $100m to Picea, $2.7m to Chinese electric vehicle giant BYD and $3.4m to US Customs and Border Protection in unpaid tariffs.

Upon completion of the Chapter 11 process, Picea Robotics, the company’s lender and primary supplier, will acquire all of iRobot’s outstanding shares. The sale will give Picea 100 percent of the equity, deleveraging iRobot’s balance sheet and enabling it to continue operating, pursue its product roadmap and maintain its global footprint. The transaction aims to enhance financial stability, reduce debt and support innovation across iRobot’s robotics and smart home portfolio.

“Today’s announcement marks a pivotal milestone in securing iRobot’s long-term future,” said Gary Cohen, chief executive of iRobot. “The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners. Together, we will work to continue advancing the industry-leading Roomba robots and smart home technologies that have defined the iRobot brand for more than three decades. By combining iRobot’s innovation, consumer-driven design, and R&D with Picea’s history of innovation, manufacturing, and technical expertise, we believe iRobot will be well equipped to shape the next era of smart home robotics.”

Following court approval, iRobot expects to execute its long‑term innovation strategy under Picea’s ownership. Upon completion, iRobot will become a private company wholly owned by Picea, and its shares will no longer be listed on the Nasdaq Stock Market or any other exchange. The transaction is designed to deliver a more stable balance sheet and renewed ability to invest in next‑generation robotics, smart home innovations and customer experience enhancements.

iRobot expects holders of common stock will not receive any equity in the reorganised company, and all existing shares will be cancelled. Shareholders will experience a total loss if the Chapter 11 plan is approved.

Founded in 1990 by engineers from the Massachusetts Institute of Technology, iRobot helped introduce robotics into the home, selling more than 40 million devices including its Roomba vacuum cleaner. The Roomba holds about 42 percent of the US market share and 65 percent of the Japanese market share for robotic vacuum cleaners.

Amid heightened competition and financial struggles, iRobot explored strategic alternatives. In 2022, Amazon said it would acquire iRobot and its debt for about $1.7bn, however the deal collapsed under regulatory scrutiny. In January 2024, iRobot said Amazon would pay it $94m as the deal fell apart.

Picea is a manufacturer of robotic vacuum cleaners, with research and development and production facilities in China and Vietnam. It makes household appliances and parts for companies like Xiaomi, Haier and Electrolux and sells its own robot under the brand 3i. Founded in 2016 in a Shenzhen government start‑up programme, Picea has more than 7000 employees worldwide and has sold over 20 million robotic vacuum cleaners.

Richard Summerfield