👀 Restart under supervision: After years of losses and a failed search for buyers, Roomba maker iRobot’s public-market chapter comes to an end. The company will be delisted from Nasdaq and restructured under US bankruptcy protection.
🇨🇳 Manufacturer takes control: iRobot will be acquired by a subsidiary of its main contract manufacturer, Shenzhen-based Picea Robotics. Outstanding receivables are converted into equity, leaving existing shareholders wiped out.
📉 Price war crushes margins: Revenue fell 25% year-on-year in the last quarter, with a $21.5 million loss. Cheaper Chinese rivals intensified competition, while US tariffs added roughly $23 million in extra costs in 2025.
🛑 Amazon deal as the turning point: Amazon’s planned $1.7 billion acquisition collapsed after EU antitrust opposition. Since then, iRobot continued to slide despite a $94 million breakup fee and multiple restructuring efforts.
🔧 Operations continue: Customers should see no disruption. Products and the app remain active, while iRobot will operate as a private company through February 2026, reducing debt and prioritizing survival over growth.
Background
Western consumer hardware brands are losing ground to Asian manufacturers that control costs, production, and supply chains. Innovation alone is no longer enough — whoever owns the factory ultimately ends up owning the brand.
iRobot was valued at over $3 billion in 2021. Today, it’s worth around $137 million. In 2024, the company posted a net loss of $145.5 million, and the stock is down roughly 45% year to date.
The China Survival Guide for Western Businesses
Entity setup, WeChat strategy, hiring your first local team. 12+ years on the ground in Shanghai.
