Imagine a scenario straight out of a corporate thriller: a legendary American tech brand, once the undisputed king of its niche, falls into financial ruin and ends up owned by its own overseas manufacturer — the very company that assembled its flagship products. While Foxconn acquiring a bankrupt Apple remains firmly in the realm of speculation, something remarkably similar has just unfolded in the world of smart home robotics.
iRobot, the Massachusetts-based innovator behind the iconic Roomba robot vacuum, filed for Chapter 11 bankruptcy protection on December 14, 2025.
As part of a pre-packaged restructuring plan, the company will be fully acquired by its primary contract manufacturer, Shenzhen Picea Robotics (also known as PICEA Robotics), a Chinese firm with R&D and production facilities in China and Vietnam.
Picea, which has been building many of iRobot's recent Roomba models (alongside products for brands like Shark and Anker's Eufy), will take 100% ownership, canceling approximately $264 million in debt — including a remaining $190 million loan and $74 million in manufacturing obligations.
Founded in 1990 by three MIT roboticists, iRobot revolutionized consumer robotics with the launch of the Roomba in 2002. The disc-shaped autonomous vacuum quickly became a household name, selling over 50 million units worldwide and establishing iRobot as the category creator.
At its pandemic-fueled peak in 2021, the company boasted a market valuation of $3.56 billion, dominating markets in the U.S. (around 42% share) and Japan (65% share).
However, post-pandemic realities hit hard. Revenue declined sharply — dropping to about $682 million in 2024 — amid fierce competition from lower-priced Chinese rivals like Ecovacs, supply chain disruptions, and mounting debt. New U.S. tariffs, including a 46% levy on imports from Vietnam (where most Roombas are now produced), added $23 million in costs in 2025 alone, further eroding margins.
The tipping point came from a collapsed megadeal. In 2022, Amazon agreed to acquire iRobot for $1.7 billion (later reduced to $1.4 billion), aiming to integrate Roomba into its smart home ecosystem. But intense regulatory scrutiny — particularly from the European Union over competition concerns and U.S. privacy fears about home mapping data — led Amazon to abandon the acquisition in January 2024.
Amazon paid a $94 million breakup fee, but iRobot was left with hefty debt (around $480 million total by mid-2025) and no lifeline.
Efforts to pivot, including cost-cutting layoffs (31% of staff in 2024), outsourcing more engineering, and launching new product lines, weren't enough. By late 2025, iRobot warned of potential bankruptcy, and after a potential alternative buyer backed out, Picea—having acquired much of iRobot's debt from Carlyle Group — stepped in as the sole viable option.
The restructuring, expected to close by February 2026, will delist iRobot from Nasdaq and turn it private under Picea ownership. Company officials, including CEO Gary Cohen, emphasize continuity: no disruptions to app functionality, product support, warranties, or supply chains are anticipated. Existing Roombas should continue working as usual.
This outcome has sparked debate. Co-founder Colin Angle called it "profoundly disappointing" and a "tragedy for consumers," arguing the blocked Amazon deal was avoidable and harmed U.S. innovation. Privacy concerns that sank the Amazon merger—fears of data access to home layouts — may resurface under Chinese ownership, though iRobot assures operations will remain focused on consumer trust.
For the smart vacuum market, where Chinese brands already hold nearly 70% globally, iRobot's fall underscores the challenges facing Western pioneers in hardware-intensive categories. After 35 years, the Roomba brand endures — but now under the control of the very suppliers that helped fuel its rivals' rise.
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Author: Slava Vasipenok
Founder and CEO of QUASA (quasa.io) - Daily insights on Web3, AI, Crypto, and Freelance. Stay updated on finance, technology trends, and creator tools - with sources and real value.
Innovative entrepreneur with over 20 years of experience in IT, fintech, and blockchain. Specializes in decentralized solutions for freelancing, helping to overcome the barriers of traditional finance, especially in developing regions.
