iRobot Corp. (IRBT) has filed for Chapter 11 bankruptcy protection, marking a dramatic fall from its prominence in the consumer robotics market. The company will be acquired by two entities based in China and transition to private ownership.
- iRobot filed for Chapter 11 bankruptcy on December 15, 2025
- Total liabilities exceed $1.1 billion, with $680 million in long-term debt
- Acquired by two Chinese-based companies for $825 million in cash and stock
- Key operations to remain in the U.S., but ownership shifts to foreign entities
- Roomba brand to be retained, but focus may shift toward cost-driven innovation
- iRobot stock expected to be delisted in early 2026
iRobot Corp., the pioneer behind the widely recognized Roomba line of robotic vacuum cleaners, formally initiated Chapter 11 bankruptcy proceedings on December 15, 2025. The filing comes after a sustained period of declining sales, mounting debt, and operational challenges that have eroded investor confidence over the past three years. The company has accumulated over $1.1 billion in total liabilities, with approximately $680 million in long-term debt and $420 million in short-term obligations as of its most recent financial disclosures. Under the restructuring plan, iRobot will be acquired by two companies with headquarters in Shanghai and Shenzhen, both of which have been identified in regulatory filings as holding significant stakes in the new private entity. The transaction, valued at $825 million in cash and stock, includes the assumption of all existing debt and the retention of key engineering and manufacturing operations in the United States. The new owners have pledged to maintain the Roomba brand and continue product development, though with a shift toward more cost-efficient production models. The move has drawn scrutiny from U.S. regulatory bodies and industry analysts due to the implications for technology control, supply chain security, and the future of American innovation in consumer robotics. The acquisition follows a pattern of increasing foreign investment in high-tech U.S. firms with strategic intellectual property, raising broader geopolitical concerns. Retailers and distributors reliant on iRobot’s product line have begun reassessing inventory and long-term supply agreements. iRobot shares, which traded above $100 per share in 2021, have fallen to under $12 prior to the bankruptcy filing. The stock is expected to be delisted from major exchanges in early 2026. Employees across its U.S. offices, including those in Bedford, Massachusetts, and the company’s R&D center in Boston, are facing uncertainty as the restructuring process unfolds.