iRobot — the U.S. company that brought robot vacuums like the Roomba into millions of American homes — has officially filed for bankruptcy, marking a dramatic fall nearly two years after its failed acquisition by Amazon.
The company says years of financial losses, mounting debt, and rising import tariffs have pushed it to the breaking point. As part of the bankruptcy plan, iRobot will now be taken over by its longtime manufacturing partner Shenzhen Picea Robotics, a China-based firm.
The new owners say Roomba devices will continue to operate normally.
⭐ Tariffs and Debt Hit Hard
Although most Roombas are built in Vietnam, the company was hit with significant import fees under former President Donald Trump’s trade policies.
In its bankruptcy filing, iRobot revealed:
- $3.4 million owed to U.S. Customs for unpaid tariffs
- Nearly $100 million owed to Shenzhen Picea Robotics, its primary supplier
These financial burdens, combined with declining sales, left the robot vacuum maker in a deep crisis.
⭐ From MIT Labs to Global Fame
iRobot was founded in 1990 by MIT engineers and first built robots for the U.S. military.
It later shifted toward consumer technology, introducing automatic pool cleaners and floor-cleaning robots — including its most famous product, the Roomba.
For years, Roombas dominated the smart vacuum market, but competition from cheaper foreign brands — especially Chinese manufacturers — gradually weakened iRobot’s market share.
⭐ Amazon Deal Collapse Deepened the Crisis
Amazon had agreed to buy iRobot for $1.4 billion, but the deal collapsed after U.S. and European regulators raised antitrust concerns.
During the review period, iRobot took on a $200 million loan to stay afloat — debt that became crushing once the merger failed.
The company has been losing money for several quarters. U.S. revenue dropped 33% in the most recent report, and by March this year, iRobot publicly warned that bankruptcy was likely due to falling demand, fierce competition, and tariff pressures.
⭐ What Happens Next
Under the bankruptcy restructuring, iRobot will become a private company owned by Shenzhen Picea Robotics, which also manufactures products for brands such as Shark and Eufy.
Consumers are expected to see no immediate disruption, but industry analysts say this marks the end of an era for one of America’s most iconic home-tech innovators.