Roomba maker iRobot files for bankruptcy, putting it in Chinese hands
Photo by: Andrew Lipovsky/NBCU Photo Bank/NBCUniversal via Getty Images via Getty Images
Court documents reportedly showed that Picea, a Chinese manufacturer, purchased iRobot while taking its debt on board, which is estimated to be about $190 million. The vacuum company took on the debt in 2023 to refinance its operations, Reuters claimed.
The debt came even after Amazon paid a $94 million termination fee after backing out of a $1.7 billion acquisition deal in 2024, according to the New York Times.
It has not been that long since iRobot had a massive market value at $3.56 billion in 2021; it is now estimated to be worth just $140 million.
New owners Picea will take 100% ownership of the company and cancel the $190 million in debt, while also canceling a $74 million debt that iRobot owed through a manufacturing agreement.
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Not only did iRobot need to deal with Vietnamese tariffs, other manufacturing that was established in Malaysia in 2019 was also likely affected.
It was not announced that Roomba had cut manufacturing from the country, and if it remained, would likely have been subjected to a 24% tariff rate from the Trump administration, which included taxing machinery and electronics.
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