Roomba vacuum cleaner firm files for bankruptcy
Under the so-called pre-packaged Chapter 11 process, the main maker of its devices will take ownership of the firm.
15 December 2025
Peter HoskinsBusiness reporter
The US firm behind the Roomba smart vacuum cleaner, iRobot, has filed for bankruptcy protection after facing competition from Chinese rivals and being hit by tariffs.
Under the so-called pre-packaged Chapter 11 process, the main manufacturer of its devices, Shenzhen-based Picea Robotics, will take ownership of the firm.
The tough commercial landscape had forced iRobot to cut its prices and make major investments in new technology, according to documents filed on Sunday.
US import duties of 46% on goods from Vietnam, where most of iRobot's devices for the American market are made, increased its costs by $23m (£17.2m) this year, the firm said.
The loss-making company was valued at $3.56bn in 2021 after the pandemic helped to drive strong demand for its products. It is now valued at around $140m.
On Friday, iRobot's shares fell by more than 13% on the technology-heavy Nasdaq trading platform in New York.
iRobot said the bankruptcy filing was not expected to disrupt its app, supply chains or product support.
Founded in 1990 by three members of the Massachusetts Institute of Technology's (MIT) Artificial Intelligence Lab, iRobot initially focused on defence and space technology before launching the Roomba in 2002.
The Roomba holds about 42% of the US market share and 65% of the Japanese market share for robotic vacuum cleaners, according to the company.
Last year, a planned $1.7bn takeover deal by online retail giant Amazon was derailed by the European Union's competition watchdog.
Trade tariffs imposed by US Donald Trump on goods entering America from overseas has added to costs to many businesses, including iRobot, which rely on imports for product manufacturing.
Trump has argued that the import taxes will boost American jobs and industry.
Picea is a manufacturer of robotic vacuum cleaners, with research and development and production facilities in China and Vietnam.
It has more than 7,000 employees worldwide and has sold more than 20 million robotic vacuum cleaners.