• iRobot files for Chapter 11 bankruptcy protection after struggling with competition and tariffs.
• Shenzhen Picea Robotics will acquire iRobot, alleviating $264 million in debt.
• The company will continue operations without disruption to services or customer support.
• iRobot's stock has plummeted significantly following the cancellation of a planned Amazon acquisition.

iRobot, the maker of the popular Roomba vacuum cleaner, has filed for Chapter 11 bankruptcy protection, citing mounting pressures from competition and tariffs. The company announced that it will be acquired by Shenzhen Picea Robotics, its primary manufacturer, in a move to restructure and alleviate its financial burdens, including approximately $264 million in debt, according to Reuters, BBC, India Times, and CBS News.

The company, which generated $682 million in revenue in 2024, has struggled with competition from lower-priced rivals, particularly from China, and has faced significant increases in operational costs due to U.S. tariffs that added $23 million to its expenses in 2025. Despite maintaining strong market shares with 42% in the U.S. and 65% in Japan, iRobot's profitability was severely impacted, as detailed in court documents, according to Reuters, BBC, and India Times.

iRobot has remained a significant player since its founding in 1990, initially focusing on defense and space technology before introducing the Roomba in 2002. However, the company’s stocks suffered dramatically after a proposed $1.7 billion acquisition by Amazon was blocked by European regulators, forcing layoffs and contributing to a rapid decline in stock value, as reported by India Times and CBS News.

Under its restructuring agreement with Picea, iRobot plans to continue operations as a private entity without disruptions to customer support or app functionality. This acquisition allows the company to navigate its financial difficulties while ensuring continuous service to its existing customer base, according to Reuters and BBC.