iRobot Corporation filed for Chapter 11 bankruptcy protection in the District of Delaware on December 14, 2025, after a failed acquisition attempt by Amazon and a liquidity crisis that left the company with only $24.8 million in cash and $480.3 million in total assets and liabilities. The filing follows a $205.3 million term‑loan fair value and a $352 million debt owed to its primary contract manufacturer, PICEA Robotics, of which $91 million is past due.
Under the pre‑packaged plan, PICEA will acquire 100 % of iRobot’s equity, effectively taking the company private. The transaction will be completed by February 2026, after which iRobot will continue operating in the ordinary course while restructuring its debt. Existing shareholders will receive no recovery, and the company’s common stock will be delisted from Nasdaq, ending its status as a publicly traded company.
iRobot’s financial decline has been steep: revenue fell 23.4 % to $681.85 million in 2024, and the company posted a $17.7 million operating loss in Q3 2025 versus a $7.3 million profit in Q3 2024. Gross margins slipped from 32.2 % in Q3 2024 to 31.0 % in Q3 2025, reflecting pricing pressure from low‑cost Chinese rivals and a 46 % tariff on Vietnamese imports that increased production costs. The company’s mid‑tier and premium robot sales, which account for 74 % of total robot revenue, have been eroded by aggressive discounting and supply‑chain disruptions.
CEO Gary Cohen said the PICEA transaction is a “pivotal milestone in securing iRobot’s long‑term future” and will strengthen the company’s financial position while preserving continuity for consumers, customers, and partners. He cited “continuing market headwinds, ongoing production delays, and unforeseen shipping disruptions” as the primary reasons for the Q3 revenue shortfall, underscoring the need for a capital structure overhaul and a shift in competitive strategy.
The market reacted sharply: iRobot’s stock fell more than 70 % in pre‑market trading on December 15, 2025, as investors priced in the loss of shareholder equity and the uncertainty surrounding the company’s future under Chinese ownership. The steep decline reflected the combined impact of the bankruptcy filing, the complete wipeout of common equity, and the delisting from Nasdaq, which together signaled a dramatic shift in iRobot’s risk profile and competitive position.
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