Roomba maker iRobot files for bankruptcy after years of struggle

iRobot, the name many people still associate with robot vacuum cleaners, has entered bankruptcy after struggling for years to keep up in a fast changing market. The company filed for Chapter 11 in the US on December 14, saying it has reached a deal that will hand over control to its main supplier and lender, Shenzhen PICEA Robotics, along with Santrum Hong Kong.

For customers and employees, this does not mean iRobot is shutting shop. The company says it will continue to run its business as usual while the process plays out in court. Salaries will be paid, suppliers will be paid, and products will continue to be sold. What will change is ownership. Once the restructuring is complete, Shenzhen PICEA will own the company, while existing shareholders will lose their stake.

In a short statement, CEO Gary Cohen called the move an important step to secure iRobot’s future. Behind that careful wording is a reality the company has been dealing with for some time. iRobot has been under pressure for years, with falling sales and rising competition slowly catching up with a brand that once defined its category.

Founded in 1990 by three engineers from MIT, iRobot was an early star in home technology. The Roomba turned cleaning into a push button task and helped the company sell more than 50 million robots over three decades. For many households, iRobot was the first and often the only robot they ever bought.