iRobot, maker of the Roomba vacuum, filed for Chapter 11 bankruptcy and will go private after being acquired by its main manufacturer, Picea Robotics. The company, struggling with competition from low-cost rivals and new U.S. tariffs, reported $682 million in 2024 revenue but faced declining profits. iRobot carries $190 million in debt, which Picea will cancel as part of the acquisition, along with $74 million owed under their manufacturing deal. Other creditors and suppliers will be paid in full. The bankruptcy is not expected to affect apps, customer programs, or product support. Founded in 1990 by MIT roboticists, iRobot launched the Roomba in 2002, which holds about 42% of the U.S. market and 65% in Japan. Once valued at $3.56 billion, the company is now worth roughly $140 million and has 274 employees.

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