Roomba maker iRobot has filed for Chapter 11 bankruptcy as it works to restructure its balance sheet under mounting competitive and tariff pressures. Under a Restructuring Support Agreement (RSA), the Massachusetts company plans to transfer ownership to its primary manufacturer and secured lender, Shenzhen PICEA Robotics and Santrum Hong Kong, together known as Picea.
iRobot US Holdings, LLC Starts Restructuring
According to Pacer, iRobot US Holdings, LLC and two affiliates filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court of the District of Delaware. A Chapter 11 voluntary petition was submitted by the consumer robotics company on December 14.
In a press release, the company said Picea will assume full ownership of iRobot US Holdings under the restructuring agreement. Through these developments, the company’s balance sheet is expected to deliver while its app and customer programs continue to work.
Before the filing, the company received acceptances of the Chapter 11 plan from certain creditors as per Section 1126(b) of the Bankruptcy Code.
Gary Cohen, Chief Executive Officer, iRobot, said, “Today’s announcement marks a pivotal milestone in securing iRobot’s long-term future. The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners.”
Together, we will work to continue advancing the industry-leading Roomba robots and smart home technologies that have defined the iRobot brand for more than three decades,” Cohen added.
Cohen said the combination of iRobot’s product innovation and Picea’s manufacturing expertise will help shape the next phase of smart home robotics.
Background of the Company
iRobot has produced robot vacuums, robotic mops, and other home-cleaning products since 1990. One of its most popular products, Roomba, was launched in 2002.
The Massachusetts-based company has sold more than 50 million robotic products worldwide.
According to Reuters, the restructuring is driven by growing competition from low-cost rivals and the impact of new U.S. tariffs.
The company generated nearly $682 million in total revenue last year. However, profits have been minimal due to competition from rivals like the Chinese brand Ecovacs Robotics. These brands have forced iRobot US Holdings, LLC to lower prices and invest in technological upgrades.
A 46% tariff levied on imports from Vietnam has further slowed the progress of iRobot US Holdings, LLC. In 2025, the new U.S. tariffs raised the costs of iRobot US Holdings, LLC by $23 million.
The filing also revisits iRobot’s failed 2022 acquisition by Amazon, a $1.4 billion deal that collapsed amid regulatory scrutiny. However, that deal failed due to regulatory concerns. Following this, iRobot US Holdings, LLC was burdened with a debt worth nearly $190 million. The debt was a result of a loan taken to refinance its operations while waiting for approval for the sale.
Case Related Details
Attorney Andrew L. Magaziner from Young Conaway Stargatt & Taylor, LLP is offering legal representation to iRobot US Holdings, LLC in the case, the filing states. Karian Wong, the Chief Financial Officer, signed the Chapter 11 petition before it was filed.
The company press release adds that Paul, Weiss, Rifkind, Wharton & Garrison LLP is the lead legal counsel, C Street Advisory Group is the strategic communications advisor, and Alvarez & Marsal is the investment banker and financial advisor. It also says that White & Case LLP is Picea’s legal counsel in the case.
Below is a summary of bankruptcy details of iRobot US Holdings, LLC and its affiliates in a consolidated manner:
- Filing Date: December 14, 2025
- Court and Jurisdiction: U.S. Bankruptcy Court from the District of Delaware
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 25-12198-BLS
- Estimated Assets: $100,000,001 – $500 million
- Estimated Liabilities: $100,000,001 – $500 million
- Reason for Filing: Market competition and rising debts
The latest filing notes that the total number of creditors of iRobot US Holdings, LLC and its affiliates is between 50,001 and 100,000. Funds will be available for unsecured creditors through the Chapter 11 proceedings, the filing adds.
A list of consolidated corporate ownership statement and list of equity security holders was submitted in the U.S. Bankruptcy Court of the District of Delaware on December 14. After this, a list of iRobot’s equity interest holders was shared on the same day. A list of creditors having the 30 largest unsecured claims was also submitted.
As the case progresses, based on iRobot’s bankruptcy plan, Picea is expected to take 100% of its equity and eliminate the existing $190 million debt.
