{"id":40918,"date":"2025-12-16T17:11:31","date_gmt":"2025-12-16T17:11:31","guid":{"rendered":"https:\/\/agooka.com\/news\/usa\/irobot-filed-for-bankruptcy-how-the-roomba-maker-got-here\/"},"modified":"2025-12-16T17:11:31","modified_gmt":"2025-12-16T17:11:31","slug":"irobot-filed-for-bankruptcy-how-the-roomba-maker-got-here","status":"publish","type":"post","link":"https:\/\/agooka.com\/news\/usa\/irobot-filed-for-bankruptcy-how-the-roomba-maker-got-here\/","title":{"rendered":"iRobot filed for bankruptcy: How the Roomba maker got here"},"content":{"rendered":"<figure><img decoding=\"async\" src=\"https:\/\/i.insider.com\/694055bc04eda4732f2d8ab9?format=jpeg\" alt=\"iRobot&#039;s Roomba vacuums.\"\/><figcaption>iRobot, the parent company of Roomba, filed for Chapter 11 bankruptcy protection.<\/p>\n<p>Justin Sullivan\/Getty Images<\/p>\n<\/figcaption><\/figure>\n<ul>\n<li>iRobot, the maker of the Roomba, filed for Chapter 11 bankruptcy after financial struggles.<\/li>\n<li>A failed $1.4 billion Amazon acquisition contributed to iRobot&#039;s financial woes.<\/li>\n<li>Here&#039;s how the pioneering robotics company ended up here.<\/li>\n<\/ul>\n<p>iRobot, the maker of the Roomba robot vacuum cleaner, filed for Chapter 11 bankruptcy protection this week after years of mounting financial struggles and a failed $1.4 billion acquisition deal with Amazon.<\/p>\n<p>The 35-year-old company once reigned supreme in the world of robotic vacuums, but its dominance waned amid rising competition from lower-cost rivals and weakening consumer demand.<\/p>\n<p>Here&#039;s a look back at how this once mighty, pioneering robotics company arrived at this moment.<\/p>\n<p>iRobot was founded by MIT roboticists<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/i.insider.com\/69416d5704eda4732f2d95a3?format=jpeg\" alt=\"iRobot cofounder Colin Angle next to a Roomba.\"\/><figcaption>iRobot cofounder Colin Angle next to a Roomba.<\/p>\n<p>Matthew J. Lee\/The Boston Globe via Getty Images<\/p>\n<\/figcaption><\/figure>\n<p>iRobot was founded in 1990 by three roboticists from the Massachusetts Institute of Technology \u2014 Colin Angle, Helen Greiner, and Rodney Brooks \u2014 who had a &quot;vision of making practical robots a reality,&quot; the company says on its website.<\/p>\n<p>Before the Roomba, iRobot made robots for military use<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/i.insider.com\/690bb3087f37aa653f55780b?format=jpeg\" alt=\"A soldier with an iRobot robot.\"\/><figcaption>iRobot used to make robots for military use.<\/p>\n<p>Scott Nelson\/Getty Images<\/p>\n<\/figcaption><\/figure>\n<p>iRobot focused on designing robots for space-related research and military use in its early years.<\/p>\n<p>In 1998, the Massachusetts-based company won a contract from the Defense Advanced Research Projects Agency, known as DARPA, to build a tactical mobile robot. This led to the development of iRobot&#039;s PackBot, which was later used in search operations at Manhattan&#039;s Ground Zero following the 9\/11 terrorist attacks.<\/p>\n<p>The launch of the Roomba<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/i.insider.com\/69407dd564858d02d216d66a?format=jpeg\" alt=\"An early model Roomba.\"\/><figcaption>An early model of the Roomba.<\/p>\n<p>Douglas McFadd\/Getty Images<\/p>\n<\/figcaption><\/figure>\n<p>In 2002, iRobot had its consumer breakthrough with its debut of the Roomba, its iconic self-cleaning disc-shaped vacuum.<\/p>\n<p>Over the next two decades, the company went on to release dozens of Roomba models. It has sold over 50 million models globally since.<\/p>\n<p>iRobot goes public<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/i.insider.com\/69417f1c64858d02d216df1b?format=jpeg\" alt=\"Nasdaq stock exchange circa 2005\"\/><figcaption>The Nasdaq stock exchange circa 2005<\/p>\n<p>Ramin Talaie\/Corbis via Getty Images<\/p>\n<\/figcaption><\/figure>\n<p>iRobot went public in November 2005 with its IPO priced at $24 per share. It began trading its shares on the Nasdaq under the ticker symbol IRBT.<\/p>\n<p>By then, the company was well known for its robot vacuums, and by 2013, iRobot had sold over 10 million home cleaning robots.<\/p>\n<p>The company hit its highest annual revenue in 2021<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/i.insider.com\/694182e4832e0ef1ead64b3e?format=jpeg\" alt=\"CEO Colin Angle poses in the iRobot Bedford, MA office on January 22, 2020.\"\/><figcaption>CEO Colin Angle poses in the iRobot Bedford, MA office on January 22, 2020.<\/p>\n<p>Boston Globe\/Boston Globe via Getty Images<\/p>\n<\/figcaption><\/figure>\n<p>iRobot saw its annual revenue peak in 2021 at $1.56 billion, but sales have been falling ever since.<\/p>\n<p>Sales dropped, in part, thanks to stiffer competition from Chinese rivals like Dreame, Roborock, and Ecovacs, as well as other brands such as Shark and Samsung.<\/p>\n<p>The failed Amazon-iRobot deal<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/i.insider.com\/688b56783d5881a51c1e5568?format=jpeg\" alt=\"The Amazon logo on the fa\u00e7ade of an office building\"\/><figcaption>The Amazon logo on the fa\u00e7ade of Amazon Germany&#039;s headquarters in Parkstadt Schwabing in Munich.<\/p>\n<p>Matthias Balk\/picture alliance via Getty Images<\/p>\n<\/figcaption><\/figure>\n<p>Amazon agreed to buy iRobot in 2022 for $61 per share in an all-cash transaction, but the deal collapsed two years later with the companies saying there was &quot;no path to regulatory approval in the European Union.&quot;<\/p>\n<p>The same day the companies announced that the proposed merger was scrapped in January 2024, iRobot cut 31% of its staff, and Angle, iRobot&#039;s cofounder and longtime CEO, also stepped down.<\/p>\n<p>iRobot sounded the alarm about its business<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/i.insider.com\/6941839f64858d02d216dfc4?format=jpeg\" alt=\"Roombas in boxes on shelves\"\/><figcaption>Roombas in boxes on shelves<\/p>\n<p>Joe Raedle\/Getty Images<\/p>\n<\/figcaption><\/figure>\n<p>In a March 2025 earnings report, iRobot said there was &quot;substantial doubt&quot; about the company&#039;s ability to continue.<\/p>\n<p>The company struggles to find a new buyer<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/i.insider.com\/694184d404eda4732f2d9918?format=jpeg\" alt=\"iRobot&#039;s Bedford Mass office\"\/><figcaption>Inside iRobot&#039;s Bedford, Mass., office<\/p>\n<p>James Leynse\/Corbis via Getty Images<\/p>\n<\/figcaption><\/figure>\n<p>iRobot attempted to find a new buyer after its deal with Amazon collapsed. In an October 2025 regulatory filing, it said the last remaining potential acquirer pulled out &quot;following a lengthy period of exclusive negotiations.&quot;<\/p>\n<p>The company warned that without fresh funding, it &quot;may be forced to significantly curtail or cease operations and would likely seek bankruptcy protection.&quot;<\/p>\n<p>iRobot files for bankruptcy<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/i.insider.com\/694181e2832e0ef1ead64b1a?format=jpeg\" alt=\"A picture of a bankruptcy petition next to a judge&#039;s gavel\"\/><figcaption>A bankruptcy petition next to a judge&#039;s gavel<\/p>\n<p>Pakin Songmor\/Getty Images<\/p>\n<\/figcaption><\/figure>\n<p>iRobot filed for Chapter 11 on December 14 and said the company would be acquired by its China-based primary contract manufacturer and lender, Picea Robotics, through a court-supervised process. Under the deal, iRobot would be taken private.<\/p>\n<p>The company said it expects to continue to operate as normal and does not anticipate any disruption to its core operations, including its app and ongoing product support.<\/p>\n<p>&quot;The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners,&quot; said iRobot CEO Gary Cohen.<\/p>\n<p>Read the original article on Business Insider<\/p>\n","protected":false},"excerpt":{"rendered":"<p>iRobot, the parent company of Roomba, filed for Chapter 11 bankruptcy protection. Justin Sullivan\/Getty Images iRobot, the maker of the Roomba, filed for Chapter 11 bankruptcy after financial struggles. A failed $1.4 billion Amazon acquisition contributed to iRobot&#039;s financial woes. Here&#039;s how the pioneering robotics company ended up here. iRobot, the maker of the Roomba [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":{"0":"post-40918","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-usa"},"_links":{"self":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts\/40918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/comments?post=40918"}],"version-history":[{"count":0,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts\/40918\/revisions"}],"wp:attachment":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/media?parent=40918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/categories?post=40918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/tags?post=40918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}