iRobot files for Chapter 11 bankruptcy as tariffs and Chinese competition squeeze margins

iRobot (Picea)/Roomba

iRobot announced Chapter 11 bankruptcy protection in Delaware, citing a combination of 46% US tariffs on Vietnam-made vacuum components (which increased costs by $23M in 2025), rising competition from cheaper Chinese rivals (particularly Ecovacs), and margin compression. The company agreed to be taken private in a court-supervised sale.

• 46% tariff on vacuum components from Vietnam increased costs by $23 million in 2025.
• iRobot competed against Chinese brands offering similar vacuums at 30–50% lower prices.
• The company was once valued at $3.56 billion in 2021; by end of 2025 it was worth roughly $140 million.
• iRobot expected to continue normal operations throughout Chapter 11 with no disruption to app, customer programs or supply chains.