• iRobot has filed for Chapter 11 bankruptcy protection.
• The company will be acquired by its main supplier, Shenzhen PICEA Robotics.
• Tariffs and competition from cheaper Chinese rivals contributed to iRobot's financial struggles.
• iRobot's valuation plummeted from $3.56 billion in 2021 to approximately $140 million.
• Concerns regarding product support and functionality remain after the bankruptcy declaration.

iRobot, the company famous for its Roomba vacuum cleaners, filed for Chapter 11 bankruptcy protection following years of declining sales and mounting debt. The acquisition will be led by Shenzhen PICEA Robotics, the company’s main supplier, which will take full ownership and forgive approximately $264 million in debt, allowing iRobot to continue operations without major disruptions to customer service or app functionality, according to BBC and India Times.

Founded in 1990 by researchers from MIT, iRobot initially specialized in defense technology before launching the Roomba in 2002. However, increasing competition from Chinese brands and import tariffs imposed by the U.S. have severely impacted its profitability. The tariffs added an estimated $23 million to costs in 2025, forcing iRobot to cut prices to stay competitive, according to CBS News and NPR.

The firm, which was valued at $3.56 billion during the pandemic, has seen its stock price drop dramatically, leading to a valuation around $140 million before the bankruptcy filing. One of the final blows was the failed acquisition by Amazon due to scrutiny from European regulators, which resulted in a significant loss of market position for iRobot, as detailed by Los Angeles Times and India Times.

As the acquisition by PICEA Robotics is finalized, concerns arise among consumers about the future support of Roomba devices, particularly regarding software updates. iRobot has assured customers that there will be no disruption in services or product functionalities following the transition, a claim echoed by multiple sources, including CBS News and Los Angeles Times.