iRobot has entered bankruptcy after struggling for years to keep up in a fast changing market. The company filed for Chapter 11 in the US on December 14, saying it has reached a deal that will hand over control to its main supplier and lender, Shenzhen PICEA Robotics, along with Santrum Hong Kong.
Statement from iRobot on Bankruptcy
"Today's announcement marks a pivotal milestone in securing iRobot's long-term future," said Gary Cohen, Chief Executive Officer, iRobot. "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,” Gary added.
“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," the CEO mentioned.
How iRobot Lost Its Market Dominance
Rise of Roomba
iRobot was founded in 1990 by three engineers from MIT. It was an early star in home technology. The Roomba was launched in 2002 and it became a helpful gadget for many across the globe. The Roomba turned cleaning into a push button task and helped the company sell more than 50 million robots over three decades. For many households, iRobot was the first and often the only robot they ever bought.
The company raised $38 million altogether, including from The Carlyle Group, before going public in a 2005 IPO that raised $103.2 million. By 2015, iRobot to launched its own venture arm. The plan at the time was to invest $100,000 to $2 million in up to 10 seed and Series A robotics startups each year.
In 2022, Amazon agreed to acquire iRobot for $1.7 billion. In a press release announcing the tie-up, Angle, who had been the CEO since the company’s inception, spoke about “creating innovative, practical products” and finding “a better place for our team to continue our mission.”
How Chinese Competition Accelerated iRobot’s Collapse
Things began to change after 2021. Supply problems made products harder and more expensive to build. At the same time, the market filled up with new robot vacuum brands. Many of them were cheaper and packed with similar features. iRobot, once the leader, found numerous challenges to stay relevant in the market.
The Carlyle Group, which provided a $200 million lifeline back in 2023, ultimately just prolonged the inevitable.
iRobot’s Roomba was the gold standard in robotic vacuums, a household name synonymous with convenience and innovative technology. The brand once commanded a staggering 64% market share in 2016. Its market share dropped to 40% by 2022. The sales in US had reduced by 47% in 2024, and the company reported a net loss of $145 million.
Pricing Pressure
Rivals like Roborock and Ecovacs started offering more advanced features at competitive prices. Amazon and iRobot agreed to kill the deal in January 2024, with Amazon paying a $94 million breakup fee and walking away. Angle resigned. The company’s shares decreased and it laid off 31% of its workforce.
What followed afterward was a slow-motion collapse. Earnings had been declining since 2021 thanks to supply chain chaos and Chinese competitors.
The US-China trade war imposed tariffs on Chinese-manufactured goods, which increased production costs for iRobot. Competitors diversified their manufacturing operations, which reduced their exposure to these tariffs and maintained more competitive pricing.
Strategic Missteps That Cost iRobot Market Leadership
iRobot’s inability to keep pace with competitors left it struggling to maintain relevance. While competitors embraced LiDAR navigation, known for its precision and efficiency, iRobot continued to rely on VSLAM (Visual Simultaneous Localization and Mapping). Although VSLAM was once innovative, it could not match the accuracy, speed, and reliability of LiDAR.
iRobot introduced LiDAR technology in 2025. Competitors like Roborock and Ecovacs capitalized on this gap, offering devices with superior navigation and cleaning capabilities.
The end of deal between Amazon and iRobot left the company in a precarious position.
Longtime CEO Colin Angle stepped down, and Gary Cohen, a turnaround specialist, assumed the role. Under Cohen’s leadership, the company implemented drastic cost-cutting measures, including a 31% reduction in its workforce and scaled-back research and development efforts.
Will iRobot Continue Operations?
The company says it will continue to run its business as usual while the process plays out in court. Shenzhen PICEA Robotics, iRobot’s main supplier and lender, will take control of the reorganized company.
“To be clear, today’s news has no impact on our business operations or our ability to serve our customers – which continues to be our top priority,” said spokeswoman Michèle Szynal. “We remain focused on delivering intelligent home innovations that make consumers’ lives better and easier. Our products are not changing.”
The company has also vowed to “meet its commitments to employees and make timely payments in full to vendors and other creditors for amounts owed throughout the court-supervised process.”
Final Thoughts
iRobot should address several key areas to reclaim its position:
While iRobot’s future remains uncertain, its journey highlights the importance of strategic foresight and responsiveness in a fast-paced, technology-driven world. iRobot’s decline is a cautionary tale of how even the most innovative companies can falter when they fail to adapt.
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