iRobot, the renowned U.S. maker of robotic vacuums, has filed for Chapter 11 bankruptcy as part of a strategic move to restructure its financial obligations. The company, famous for its Roomba vacuum line, submitted its voluntary bankruptcy petition on December 14, 2025, at the U.S. Bankruptcy Court for the District of Delaware. This filing comes amid increasing competitive pressures and rising tariffs that have significantly impacted its profitability.
Under a Restructuring Support Agreement (RSA), iRobot US Holdings, LLC will transfer ownership to its primary manufacturer and secured lender, Shenzhen PICEA Robotics and Santrum Hong Kong, collectively known as Picea. This transaction is aimed at strengthening iRobot’s balance sheet while ensuring the continuity of its products and services for consumers.
Gary Cohen, iRobot’s Chief Executive Officer, expressed optimism about the future, stating, “Today’s announcement marks a pivotal milestone in securing iRobot’s long-term future. The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners.” He emphasized the collaboration between iRobot’s innovative technology and Picea’s manufacturing capabilities as a key to advancing smart home robotics.
### Financial Struggles and Competitive Landscape
The restructuring decision follows a challenging period for iRobot, which has been grappling with fierce competition from lower-cost rivals, notably the Chinese brand Ecovacs Robotics. Last year, iRobot reported nearly $682 million in total revenue, yet profits remained minimal, primarily due to market pressures that necessitated price reductions and increased investments in technological advancements.
Adding to the financial strain, a 46% tariff imposed on imports from Vietnam has exacerbated the situation, costing iRobot approximately $23 million in additional expenses since the tariffs came into effect in 2025. These financial challenges were further compounded by the collapse of a proposed $1.4 billion acquisition by Amazon in 2022, which fell through due to regulatory scrutiny. As a result, iRobot found itself burdened with nearly $190 million in debt, a consequence of loans taken to refinance operations while awaiting approval for the sale.
### Legal and Operational Details
Legal representation for iRobot in this case is being provided by Andrew L. Magaziner from Young Conaway Stargatt & Taylor, LLP. The Chapter 11 petition was signed by Karian Wong, the Chief Financial Officer, prior to its filing. The company has also engaged other legal and financial advisors, including Paul, Weiss, Rifkind, Wharton & Garrison LLP, C Street Advisory Group, and Alvarez & Marsal.
The bankruptcy filing indicates that iRobot has estimated assets and liabilities between $100 million and $500 million. The total number of creditors is reported to be between 50,001 and 100,000, with funds expected to be available for unsecured creditors through the Chapter 11 proceedings.
As part of the restructuring plan, Picea is anticipated to acquire 100% of iRobot’s equity, effectively eliminating the existing $190 million debt. This move is expected to facilitate a smoother transition and operational continuity for the company moving forward.
In summary, the filing for Chapter 11 bankruptcy is a strategic step for iRobot as it seeks to navigate through challenging market conditions and emerge stronger in the competitive landscape of home robotics.
