iRobot has filed for chapter and could also be taken over by its main provider

iRobot, which introduced robotic vacuum cleaners to the lots with its iconic Roomba fashions, has filed for Chapter 11 bankruptcy. The Massachusetts-based firm plans to promote all belongings to its main provider, a Chinese language firm referred to as Picea Robotics. If accredited by a chapter courtroom, the transfer would permit iRobot to “proceed working within the extraordinary course, pursue its product improvement roadmap, and preserve its international footprint,” iRobot wrote in a press launch.

The corporate expects the deal to shut in February 2026, however says it would proceed to function “with no anticipated disruption to its app performance, buyer applications, international companions, provide chain relationships or ongoing product assist.” Meaning your Roomba ought to proceed to scrub usually and you can get consumables and substitute elements.

Nonetheless, traders of widespread inventory “will expertise a complete loss and never obtain restoration on their funding” if the deal is accredited, iRobot acknowledged. The corporate did not talk about how the transfer would possibly have an effect on its workers within the US or elsewhere.

Chapter appeared a probable final result for iRobot after Amazon dropped its $1.7 billion acquisition of the corporate final 12 months following a veto menace by European regulators. The corporate’s fortunes continued to say no and it issued a statement to investors in March 2025 that it had “substantial doubt about [its] capability to proceed.”

It is a unhappy flip of occasions for the corporate that invented the robotic vacuum area of interest and launched its first product, the Roomba, again in 2002. It dominated that area for greater than a decade, however its market dimension has steadily shrunk extra not too long ago, notably since Covid, resulting from competitors from rivals like Roborock and Dreame.

Although iRobot retooled its product lineup earlier this 12 months with new fashions just like the Roomba 105 Vac Robotic collection and Roomba Plus 505 Combo Robotic + AutoWash Dock, however they failed to maneuver the gross sales needle sufficient. The corporate was reportedly hit onerous by Trump’s 46 % tariff in Vietnam the place it manufactures merchandise for the US market.

If the sale is accredited, iRobot says it would return in pressure. “Right now’s announcement marks a pivotal milestone in securing iRobot’s long-term future,” stated CEO Gary Cohen. “The transaction will strengthen our monetary place and can assist ship continuity for our shoppers, clients, and companions.”