iRobot Corporation (NASDAQ: IRBT) Cliff Sensors Failed: Stock Tumbles into Bankruptcy Abyss
Bankruptcy Filing Triggers Brutal Stock Plunge as Roomba Maker Hands Control to Chinese Manufacturer
In a fall that would make even the most daring stunt robot think twice, iRobot Corporation (NASDAQ: IRBT), the trailblazing force behind the Roomba smart vacuum, has filed for Chapter 11 bankruptcy protection, sending its shares tumbling off a virtual cliff in dramatic fashion on December 15, 2025.
The Bedford, Massachusetts-based iRobot Corporation, established in 1990 by MIT Artificial Intelligence Lab alumni who initially built bots for defense and exploration before unleashing the game-changing Roomba in 2002, revealed its pre-packaged bankruptcy plan on Sunday, December 14. In this streamlined restructuring, primary manufacturer and creditor Shenzhen-based Picea Robotics will seize full control, converting debts exceeding $264 million into ownership while taking the company private. Court approval is anticipated by February 2026, with assurances that daily operations remain seamless – apps, supply lines, and customer support for millions of Roombas worldwide will continue uninterrupted.

