Massachusetts-Based iRobot Could Be Headed for Bankruptcy

Bedford's iRobot, the maker of Roomba robotic vacuums, is in severe financial distress and warns it may run out of cash and seek bankruptcy protection if it doesn't secure fresh funding.

According to a NewsCenter 5 report, iRobot raised "substantial doubt" about its future earlier this year. A formal strategic review was launched in March, which could have initiated a sale or "strategic transaction." Neither came to fruition.

As of late September 2025, iRobot owed more than $205 million. It had less than $25 million in cash, with potential default by Dec. 1 if lenders don't grant more time, according to an SEC filing.

"If the Company is unable to obtain new capital in the near term from the Lenders or otherwise, it may be forced to significantly curtail or cease operations and would likely seek bankruptcy protection," the filing states. "In such bankruptcy proceedings, it is unlikely that any proceeds would remain for distribution to stockholders and, as a result, stockholders would likely receive no recovery and will lose all of their investment in the Company. In addition, unsecured creditors of the Company would likely receive little to no recovery in such bankruptcy proceedings."

According to a Business Insider report, iRobot was founded in 1990 by MIT roboticists Colin Angle, Helen Greiner, and Rodney Brooks. The trio initially focused their efforts on space and military robotics before achieving consumer success with Roomba in 2002.

iRobot's revenue peaked at about $1.56 billion in 2021, but has since declined as competition from Chinese brands like Dreame, Roborock, and Ecovacs intensifies.

According to Business Insider, Amazon agreed to buy iRobot in 2022 for $61 per share in an all-cash transaction. Amazon, however, scrapped the deal two years later with the companies saying there was "no path to regulatory approval in the European Union." The failed deal was a significant setback to iRobot. The same day the companies announced that the proposed merger was off the table, iRobot said it would lay off 350 employees, roughly 31% of its workforce. Additionally, CEO Gary Angle stepped down as part of the company's restructuring.