iRobot Files for Chapter 11 Bankruptcy Following Collapse of Amazon Acquisition Deal

iRobot Corp. (IRBT) has officially initiated Chapter 11 bankruptcy proceedings, citing the abrupt termination of its $1.7 billion acquisition by Amazon Inc. The Federal Trade Commission (FTC) blocked the deal in late November due to antitrust concerns, leaving the company without a lifeline. iRobot reported a net loss of $284 million in the fiscal year ending June 2025, with cash reserves dwindling to $68 million by December 2025. The company now faces $410 million in outstanding debt, including $150 million in senior secured notes and $135 million in unsecured obligations. The failure of the Amazon acquisition, which had been expected to close in early 2026, was a pivotal moment for iRobot. The company had relied on the transaction to stabilize its balance sheet and fund ongoing product development. Without the infusion of capital, iRobot has been forced to halt production at two of its three U.S. manufacturing facilities and lay off 32% of its workforce—approximately 530 employees—since October 2025. Supplier contracts are under renegotiation, with key component providers such as Texas Instruments and STMicroelectronics preparing for potential delays in payments. The bankruptcy filing is expected to trigger a reorganization process that could last 12 to 18 months. Creditors, including bondholders and vendors, will be granted a voice in the restructuring. The company's trademarked product lines—Roomba, Braava, and iRobot Ready—remain central to any recovery plan. Meanwhile, Amazon has confirmed it will not pursue another acquisition of iRobot, citing regulatory uncertainty and a reassessment of its consumer robotics strategy.