The company that created the Roomba robot vacuum cleaners, iRobot, has declared bankruptcy in the United States. The future of its products seems safe, but only after a move in which the winner is the Chinese technological steamroller.
what has happened. The company already r in March, and a potential bankruptcy seemed imminent. The financial results The third quarter certainly didn’t help. This Sunday, those responsible requested entry into the so-called “Chapter 11”, a technical bankruptcy that companies in trouble request. The objective of this process is for a company to reorganize its properties and debts to continue operating instead of liquidating all its assets.
Disastrous results. iRobot generated nearly 682 million in revenue in 2024, but its benefits have been fading, mainly due to competition with Chinese manufacturers such as Ecovacas. Although iRobot continues to be a protagonist in markets such as the US and Japan, this competition has forced it to lower prices and see its profit margins reduced.
The tariffs. Another cause of the fall according to the documents of that bankruptcy application has been the tariffs. Especially those that apply to imports from Vietnam, where iRobot manufactures its robot vacuum cleaners for the United States, and which are 46%, a figure that is hardly sustainable for the manufacturer. That tax increased costs by $23 million in 2025 and made it more difficult to establish future plans.
Amazon has gotten away with a good. amazon announced the purchase of iRobot for 1.7 billion dollars – later the figure was adjusted to 1.4 billion. The operation finally was canceled because as the companies expressed “there was no path to regulatory approval for that agreement.” When that agreement fell apart, iRobot began accumulating debts that Picea, the manufacturer of the Roomba, assumed.
iRobot will pass into Chinese hands. The plan to get out of iRobot’s technical bankruptcy consists of something very simple but equally terrible for its creators. Picea will end up taking over 100% of iRobot’s assets and will cancel the $190 million of accumulated debts, in addition to the $74 million of debts that iRobot also owed to Picea under the manufacturing agreement that both had.
Users can rest assured. According to iRobot, this process will allow there to be no impact on the functionality and support of its products and applications, its customer programs, its partner relationships or its supply chain. This means that current Roomba users will continue to be able to enjoy them with (theoretically) the same level of support as before. Not only that: Picea will theoretically continue to develop and market new models going forward.
In four years they are worth 25 times less. In 2021, iRobot had a valuation of $3.56 billion. The pandemic boosted demand and significantly encouraged sales. Four years later data compiled by LSEG and cited in Reuters They indicate that its value is 140 million dollars, 25 times less than then.
Pioneers devastated by the Chinese steamroller. iRobot was created in 1990 by three robotics experts from MIT. Although they initially focused on defense and space projects, in 2002 they launched the first robotic vacuum cleaner Roomba. The product was an absolute success, and today it continues to be the dominant brand in the United States (42% share) and especially in Japan (65%).
China takes over the market. In recent years, Chinese manufacturers have managed to innovate faster and end up outselling iRobot models. Roborock, Ecovacs, Dreame and Xiaomi have already managed to outsell iRobot in the first quarter of 2025, and with the current agreement – Picea, a Chinese manufacturer, will be behind the Roomba – China’s effective market share will be almost absolute in this industry. A clean and silent conquest.
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