Roomba maker iRobot files for bankruptcy
FILE-Roomba vacuums by iRobot are displayed at Best Buy store in San Rafael, California. (Photo by Justin Sullivan/Getty Images)
Roomba maker iRobot filed for Chapter 11 bankruptcy protection and is set to be taken private in a restructuring plan.
iRobot told the Associated Press that it will continue to operate as normal during the Chapter 11 process, and it doesn’t expect any impact on its app functionality, and business operations, including customer programs and ongoing product support.
What will happen to iRobot?
Dig deeper: iRobot is known for its robotic vacuums, but has struggled lately, dealing with rising competition, layoffs and a declining stock price.
iRobot told the Associated Press that it is now being acquired by Picea through a court-supervised process. Picea is iRobot's primary contract manufacturer.
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Roomba, which is headquartered in Bedford, Massachusetts, expects to complete the prepackaged chapter 11 process by February 2026, the AP reported.
A few years ago, Amazon announced in 2022 that it had agreed to buy iRobot for $1.7 billion, but that deal was called off in 2024.
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The Associated Press reported that Amazon said at the time that it would pay iRobot a previously agreed termination fee of $94 million and iRobot said that it would undergo a restructuring to help stabilize the company.
The Source: Information for this story was provided by the Associated Press, which cites comments from iRobot. This story was reported from Washington, D.C.