Newscasts - Roomba maker iRobot files for bankruptcy

iRobot

15/12/2025 20:00

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Source: 'Reuters - Business videos'

Description: iRobot, the maker of the Roomba vacuum cleaner, filed for bankruptcy protection on Sunday, saying that it would go private after being bought by Picea Robotics, its primary manufacturer. Lisa Bernhard has more.

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Video Transcript:

I Robot, the maker of the Roomba vacuum, has filed for bankruptcy and will be taken over by its Chinese manufacturer in a deal that wipes out shareholders. iRobot’s stock plummeted more than 70% on Monday after the Chapter 11 bankruptcy filing. It comes after months of financial strain from fierce competition and new US tariffs. iRobot took in about $682 million in revenue last year, but profits were squeezed by rivals like China’s Ecovacs Robotics. The Massachusetts-based company remains dominant in key markets, including the US and Japan, but has had to slash prices and spend heavily on tech upgrades to keep pace according to the bankruptcy filing. Adding to the pressure is a 46% tariff on imports from Vietnam where iRobot makes vacuums for the US market. That tariff alone cost the company $23 million this year. iRobot was once a buyout target of Amazon’s, but that deal collapsed after a European probe. Now, with more than $190 million in debt, iRobot will be acquired by Picea Robotics, its main manufacturer. Under the bankruptcy plan, Picea will take full ownership and wipe out that debt. Founded in 1990 by three MIT roboticists, iRobot was valued at roughly $3.56 billion as recently as 2021, driven by pandemic-fueled demand. It is now worth around $140 million, according to data compiled by LSEG. iRobot said the bankruptcy is not expected to disrupt its apps, supply chain relationships, or product support.