by SONG Jianan

iRobot, the U.S. pioneer of robot vacuum cleaners, has filed for Chapter 11 bankruptcy protection in Delaware, launching a court-supervised restructuring that would transfer full ownership to its main secured creditors and contract manufacturers.

The company said the filing was made on Dec. 14 local time and expects the process to conclude by February 2026. Chapter 11 is a reorganization procedure that allows companies with ongoing operating value to restructure rather than liquidate.

Under a restructuring support agreement, iRobot will be acquired by Shenzhen PICEA Robotics Co., Ltd. and Santrum Hong Kong Co., Limited (together, Picea), its secured creditors and key contract manufacturers. Picea operates R&D and manufacturing facilities in China and Vietnam and employs more than 7,000 people worldwide, according to iRobot's disclosure.

iRobot said the deal would materially improve its balance sheet, support continued operations and preserve its global footprint.

"The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners," CEO Gary Cohen said.

During the Chapter 11 process, iRobot said it will continue to operate as normal. Its mobile app, customer service, global partnerships, supply-chain relationships and support for products already in transit will remain unaffected. The company has filed customary motions seeking court approval to pay employees, suppliers and other creditors in full and on time.

If the transaction is approved, iRobot will become a wholly owned private company controlled by Picea. Its common stock will be delisted from Nasdaq and all other national securities exchanges. The company warned that existing common shareholders are expected to receive no recovery, with all outstanding equity to be cancelled.

Founded in 1990 by a team from MIT, iRobot helped create the household robot vacuum category with the launch of Roomba in 2002. At its peak, the company held more than 80% of global market share and sold millions of units worldwide.

Its position weakened as competition intensified. While Chinese rivals such as Roborock and Narwal adopted LiDAR navigation and automatic mop-washing systems, iRobot stuck with vision-based navigation and did not release its first vacuum-and-mop combo until 2022, more than five years later. Its flagship models also remained priced above US$1,000, roughly three times the level of comparable Chinese products.

In 2022, Amazon agreed to acquire iRobot for about US$1.7 billion, but the deal collapsed after antitrust scrutiny by the U.S. Federal Trade Commission and European regulators, cutting off a key source of external funding. By October 2025, the company's final round of potential sale talks had broken down.

Financial pressure intensified. As of Sept. 27, iRobot reported US$24.8 million in cash and equivalents against US$508 million in total liabilities, with negative shareholders' equity of US$26.8 million. In the third quarter of 2025, U.S. revenue fell 33%, while sales in Europe and Japan also declined.

Industry data highlight the shift in market leadership. IDC said global robot vacuum shipments rose 18.7% year on year in the first three quarters of 2025, with Chinese brands occupying the global top five positions. iRobot's share slid to 7.9%, pushing it out of the leading group.