iRobot Bankruptcy Shakes the Tech World as Picea Steps In

iRobot has filed for bankruptcy after years of losses. The company will now be taken over by Picea Robotics. The move ends a long run for the maker of the Roomba vacuum. It also closes a major chapter in U.S. consumer tech. The main keyword for this article is “iRobot bankruptcy.”

The filing came after a long financial slide. According to Reuters and CNBC, iRobot could not recover after a failed deal with Amazon in 2024. The company faced heavy competition and rising costs. It also struggled with tariffs on its Vietnam-made products.

iRobot Bankruptcy Marks the End of an Era

iRobot bankruptcy news spread fast because the company was a major name in home robotics. The brand began in 1990. It soon became known for its smart vacuum machines. These devices helped launch the consumer robot market. But the business model changed in recent years. The company could not keep up with cheaper rivals.

According to Reuters, revenue fell sharply in both 2024 and 2025. Sales dropped more than 23% in 2024. Third-quarter sales in 2025 fell nearly 25%. Losses increased each year. The company ended 2024 with a net loss of more than $145 million. Debt also grew. iRobot owed Picea almost $100 million.

The failed Amazon deal became a turning point. The $1.7 billion offer would have given iRobot a lifeline. But regulators in the EU and the U.S. stopped the deal. Amazon paid a breakup fee, but most of it went to debt and fees. That left iRobot with few options.

Competition also rose fast. Companies based in China, like Roborock and Ecovacs, sold cheaper and smarter machines. These low-cost rivals gained market share in Asia, Europe, and the U.S. iRobot could not match their prices. Tariffs on Vietnam factories raised its costs even more.

What Happens After the iRobot Bankruptcy Deal?

Picea Robotics will now take full control of iRobot. The company is a supplier for brands like Shark and Anker. Picea makes its own line of home devices as well. The deal will cancel iRobot’s outstanding debt to Picea. But shareholders will lose everything. All equity will be wiped out.

According to AP News, iRobot leaders say the brand will survive. Current products will still work. Customer support is expected to stay active. The company hopes Picea’s factories will help cut costs. The goal is to rebuild the brand under new ownership.

Some experts warn about data concerns. Roomba machines map rooms and store home layouts. The Guardian reported that some U.S. lawmakers question how this data will be used by a foreign owner. The company says it will follow all privacy rules.

For now, buyers should not see changes. Stores will continue to sell Roomba machines. Repairs should not stop. But long-term plans remain unclear. The brand must now prove it can survive in a crowded market.

The iRobot bankruptcy shows how fast the tech world can change. The company that once led the home robotics boom now must rebuild from zero. The future of the Roomba brand will depend on how Picea reshapes iRobot in the years ahead.

FYI (keeping you in the loop)-

Q1: What caused the iRobot bankruptcy?

The company faced years of falling sales and rising costs. A failed Amazon deal and strong competition made things worse. Debt grew too large for the company to manage.

Q2: Who owns iRobot now?

Picea Robotics will take full control after the bankruptcy. It will cancel iRobot’s debt as part of the deal. All previous shareholder value will be lost.

Q3: Will Roomba products still work?

Yes, current devices will continue to work. Support teams are expected to stay active. Stores will keep selling iRobot products for now.

Q4: Did Amazon try to buy iRobot?

Yes, Amazon offered $1.7 billion in 2022. Regulators blocked the deal in 2024. The failure pushed iRobot deeper into financial trouble.

Q5: Are there privacy concerns?

Some experts worry about home mapping data. Picea says it will follow privacy laws. The issue remains under public watch.