According to Reuters, iRobot, the Bedford, Massachusetts-based maker of Roomba robot vacuums, filed for pre-packaged Chapter 11 bankruptcy in Delaware on December 14. After a failed Amazon acquisition and rapid financial deterioration, iRobot agreed to be acquired by secured lender Shenzhen PICEA Robotics Co.
The 35-year-old American robotics company, under a restructuring support agreement, will transfer 100 percent of its equity to Picea, its primary contract manufacturer. All issued and outstanding common stock will be cancelled, providing no recovery to existing shareholders. Court filings list iRobot’s estimated assets and liabilities between $100 million and $500 million. The court-supervised process expects completion by February 2026, at which point iRobot will operate as a private company wholly owned by Picea and delist from Nasdaq.
The filing follows Amazon’s abandonment of its $1.7 billion acquisition attempt in January 2024, blocked by regulatory opposition from the European Union. iRobot received a $94 million termination fee from the deal collapse. The company then reduced its workforce by 31 percent and experienced the resignation of founder Colin Angle as chief executive officer.
iRobot’s financial position weakened sharply through 2025. Cash reserves dropped to under $25 million by the third quarter. In early December, Carlyle Group sold approximately $191 million of iRobot’s outstanding debt to Santrum, a subsidiary of Picea. At that time, iRobot owed Picea $161.5 million in trade payables, including $90.9 million past due. These transactions placed over $350 million in claims under Picea’s control.
During the bankruptcy proceedings, iRobot plans to maintain ordinary course operations. Company representatives state there will be no disruption to app functionality, customer programs, or product support. iRobot has submitted court motions to continue payments to employees, vendors, and creditors.
Gary Cohen, iRobot’s chief executive officer, issued a statement: “Today’s announcement marks a pivotal milestone in securing iRobot’s long‑term future. By combining iRobot’s innovation, consumer‑driven design, and R&D with Picea’s history of innovation, manufacturing, and technical expertise, we believe iRobot will be well equipped to shape the next era of smart home robotics.”
Shenzhen PICEA Robotics Co., founded in 2016, employs over 7,000 people worldwide. The company has manufactured more than 20 million robotic vacuum cleaners and holds over 1,300 intellectual property rights globally.
