iRobot Files For Bankruptcy, But Roomba Robots Will Keep Cleaning Floors Unabated

We'll never know how Roomba maker iRobot would have fared under Amazon leadership, as the proposed purchase fell through a few years ago after European regulators blocked the deal. What's certain is that iRobot can no longer sustain its business operations on its own. The robot vacuum cleaner vendor announced on Sunday that it filed for bankruptcy, a move that's not surprising to anyone following this industry. However, it's not bad news for the Roomba robots you may currently own. You don't have to worry about the autonomous cleaners suddenly going offline, or apps ceasing to function properly following the Chapter 11 filing. iRobot, the company and the brand, will not disappear. Instead, iRobot announced that it'll be going private, with China-based Picea Robotics to purchase iRobot's entire operations. Picea is iRobot's primary contract manufacturer, according to a press release. The Chinese firm and one of its subsidiaries will take ownership of iRobot following a court-supervised process.

"Today's announcement marks a pivotal milestone in securing iRobot's long-term future," iRobot CEO Gary Cohen said in a statement. "The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners. Together, we will work to continue advancing the industry-leading Roomba robots and smart home technologies that have defined the iRobot brand for more than three decades. By combining iRobot's innovation, consumer-driven design, and R&D with Picea's history of innovation, manufacturing, and technical expertise, we believe iRobot will be well equipped to shape the next era of smart home robotics."

The press release also notes that it's business as usual for iRobot, both for consumers and its employees. The company "will continue operating in the ordinary course with no anticipated disruption to its app functionality, customer programs, global partners, supply chain relationships, or ongoing product support," according to the announcement. iRobot will also meet its commitments to employees, vendors, and other creditors. Bloomberg reports that Picea acquired iRobot's $191 million of outstanding debt last month. The debt is related to Amazon's failed acquisition plans in 2022. At the time, iRobot loaned $200 million, anticipating the Amazon deal would close.

iRobot was the pioneer of robotic vacuums, launching its first Roomba models in the early 2000s. Competition has intensified in recent years, especially after the Covid era. Various factors, including supply issues, increased competition, and even the recent waves of tariffs are among the reasons why iRobot has been forced to file for bankruptcy. That said, Roomba robots are still available for purchase as of this writing. Considering iRobot's expectations, that it will continue to run its business almost as usual and that existing customers should not be impacted by the sale, it's likely Roombas will continue to be available in stores during the bankruptcy process, that should close by February. It's likely that iRobot will continue to sell existing and future models under the same Roomba brand. That's speculation based on Cohen's statement. After all, the Roomba brand is synonymous with robotic vacuums. The company sold over 40 million robots in its 35-year history. The new owners will probably want to take advantage of the popular brand while they attempt to make it profitable again.