iRobot, the creator of Roomba, has filed for bankruptcy with its market value now at approximately 4% of its 2021 valuation of $3.56 billion.
The company’s financial collapse is directly linked to U.S. tariffs that increased costs by an estimated $23 million in 2025 due to a 46% import duty on products from Vietnam. Additionally, manufacturing operations established in Malaysia in 2019 are subject to potential tariffs of up to 24%.
Despite generating over $680 million in revenue during 2024 and maintaining a dominant presence in the U.S. and Japanese markets, iRobot has been forced into significant price cuts and technology investments that have resulted in substantial losses.
Court documents indicate that Picea, a Chinese manufacturer, will take full control of iRobot while assuming approximately $190 million in debt. This comes after Amazon terminated a planned $1.7 billion acquisition deal in 2024, paying a $94 million termination fee.
