iRobot, the maker of the popular Roomba robotic vacuum, has filed for Chapter 11 bankruptcy protection after its $1.7 billion acquisition by Amazon was terminated in late 2024. The move marks a dramatic downfall for a once-leading player in the consumer robotics sector.
- iRobot filed for Chapter 11 bankruptcy in December 2024 after Amazon abandoned a $1.7 billion acquisition.
- Revenue declined to $728 million in FY2024, down 12% from the previous year.
- Net losses reached $143 million, with $290 million in outstanding debt as of September 2024.
- Approximately 1,200 employees are affected by operational reductions.
- Roomba users may face disruptions in software updates and customer support.
- Share price dropped from $78 in 2021 to under $1.20 at the time of bankruptcy filing.
iRobot Corp. has officially entered Chapter 11 bankruptcy proceedings, a pivotal development for the company best known for its Roomba line of autonomous floor cleaners. The filing follows the collapse of a $1.7 billion acquisition deal with Amazon, which was called off in November 2024 due to regulatory hurdles from U.S. antitrust authorities. The decision to terminate the merger left iRobot without a strategic lifeline during a period of intensifying market competition and declining consumer demand for standalone robotic vacuums. Financially, iRobot reported $728 million in revenue for the fiscal year ending September 2024, a 12% drop from the prior year, with net losses reaching $143 million. The company held $290 million in debt at the end of 2024, a figure that has become unsustainable after the failed acquisition. Analysts note that the loss of Amazon’s backing—along with its global distribution network, marketing infrastructure, and R&D integration—has left iRobot without the scale needed to compete with newer entrants like Ecovacs and Xiaomi that offer AI-powered models at lower price points. The bankruptcy filing affects approximately 1,200 employees, with several manufacturing facilities in the U.S. and China expected to reduce operations or shut down. The company’s 150,000+ active Roomba users may face delays in software updates and customer service support, raising concerns about long-term product reliability. Retailers including Best Buy and Walmart have already begun removing iRobot products from shelves amid uncertainty over inventory and warranty servicing. Market analysts suggest that while the bankruptcy could open opportunities for competitors to capture iRobot’s customer base, the broader consumer robotics industry may face a temporary slowdown as confidence in the sector wavers. Investors in iRobot’s publicly traded stock (ticker: IRBT) have seen the share price fall from a high of $78 in 2021 to under $1.20 at the time of filing.