iRobot Corp. (IRBT) has filed for Chapter 11 bankruptcy protection as part of a comprehensive restructuring effort, paving the way for the company to be taken private. The move follows persistent financial challenges and declining market performance in the consumer robotics sector.
- iRobot (IRBT) filed for Chapter 11 bankruptcy in December 2025
- Total debt reduction of $450 million is expected under restructuring
- Company will be taken private with new ownership by Q2 2026
- Fiscal year 2024 revenue: $512 million, down from $629 million in 2022
- Net loss of $147 million in FY2024, with a 62% stock price decline over 12 months
- 15% workforce reduction and closure of two U.S. manufacturing sites planned
iRobot Corp. (IRBT) has officially initiated Chapter 11 bankruptcy proceedings in federal court, marking a significant turning point for the pioneer of robotic vacuum cleaners. The filing comes after years of declining revenue, mounting debt, and increasing competition in the smart home automation space. Under the restructuring plan, iRobot will be acquired by a consortium of creditors and private investors, resulting in the company’s delisting from public markets. The restructuring is expected to reduce the company’s total debt load by approximately $450 million, with a new ownership structure set to take effect by Q2 2026. The decision follows a sharp 62% drop in iRobot’s stock price over the past 12 months, bringing its market capitalization down to roughly $180 million as of December 2025. Financial statements reveal a net loss of $147 million in fiscal year 2024, driven by inventory write-downs and reduced consumer demand for premium robotic vacuums. The company reported $512 million in total revenue for FY2024, down from $629 million in 2022, reflecting a sustained contraction in its core product lines. The restructuring will involve the closure of two manufacturing facilities in the U.S. and a reduction of about 15% of its global workforce. While the company will retain key intellectual property, including its Roomba and Braava product lines, future development is expected to be scaled back to focus on core platforms. Investors and analysts are closely monitoring the transition, as the outcome may influence broader sentiment toward innovation-driven consumer tech firms facing profitability pressures. Market participants in the robotics, consumer electronics, and home automation sectors are assessing the ripple effects. Competitors such as Ecovacs Robotics and Samsung are expected to gain market share, while suppliers and partners of iRobot face uncertainty over ongoing contracts. The delisting of IRBT from public exchanges is anticipated to occur in early 2026, pending court approval of the restructuring plan.