iRobot Files for Bankruptcy: What’s Next for the Roomba Maker?
▼ Summary
– iRobot, the maker of the Roomba, has filed for Chapter 11 bankruptcy and plans to be acquired by its contract manufacturer, Picea Robotics.
– The company states its app, customer programs, and product support will continue operating without disruption for the foreseeable future.
– iRobot, a pioneer founded in 1990, has struggled for years with increasing competition from Chinese manufacturers like Ecovacs and Roborock.
– A planned 2022 acquisition by Amazon to revive the company collapsed due to regulatory scrutiny.
– The company’s revenue has continued to decline despite product line reinvention and price cuts, with U.S. tariffs posing a significant challenge.
For over two decades, the name Roomba has been virtually synonymous with robot vacuums, representing a pioneering force in home automation. The recent news that its parent company, iRobot, has filed for Chapter 11 bankruptcy protection marks a dramatic turn for this once-dominant industry leader. The filing, made late on a Sunday night, follows months of financial warnings and culminates in a planned acquisition by its contract manufacturer, Picea Robotics. The company has moved quickly to reassure customers, stating it expects no disruption to app functionality, customer support, or its supply chain, meaning existing Roombas should continue their daily cleaning duties without issue.
Founded in 1990 and launching its iconic Roomba in 2002, iRobot helped create an entirely new product category. For years, it enjoyed a commanding market position, but that dominance has steadily eroded. Intense competition from Chinese manufacturers like Ecovacs and Roborock has chipped away at its share, offering consumers advanced features at often lower price points. The company’s struggles intensified after a potential lifeline, a high-profile acquisition by Amazon in 2022, collapsed under regulatory pressure. That failed deal left iRobot to navigate a challenging market alone.
In response, the company undertook significant restructuring, slashing jobs, revamping its product lineup, and reducing prices in an effort to stay competitive. A key part of this strategy involved deepening its partnership with Picea Robotics to develop new Roomba models. Despite these efforts, declining revenue has remained a persistent problem. External economic factors have also taken a heavy toll; notably, high U.S. tariffs, including a 46 percent levy on products manufactured in Vietnam, have severely impacted iRobot’s cost structure and profitability.
The planned acquisition by Picea Robotics is now framed as the path forward. iRobot’s CEO, Gary Cohen, described the bankruptcy filing as a “pivotal milestone” intended to secure the company’s long-term viability. The move is designed to stabilize finances and ensure continuity for consumers and retail partners alike. While the iconic brand faces an uncertain future, its immediate operations are poised to continue, buying time for a strategic reset under new ownership. The story of iRobot serves as a stark reminder of how quickly market leadership can shift in the fast-paced world of consumer technology.
(Source: The Verge)
