iRobot Bankruptcy Marks a Fresh Start, Not an End

iRobot, the maker of the iconic Roomba robot vacuum, has officially filed for bankruptcy—but CEO Gary Cohen insists this is far from a death sentence. The move comes after months of financial uncertainty, as investors were warned the company could run out of cash without a buyer. Rather than signaling collapse, Cohen frames the bankruptcy as a strategic reboot designed to preserve the brand, protect employees, and position iRobot for future growth in the smart home market.

CEO Gary Cohen: “Bankruptcy Is a Lifeline”

Cohen, brought in during early 2024 to steer iRobot through turbulent waters, believes bankruptcy provides stability rather than disruption. “This is good news for us. It keeps us alive for the long term,” Cohen said in a recent interview with The Verge. He emphasized that the company’s 500 employees will remain in place, along with its Boston headquarters, R&D team, and software development staff. For iRobot, Cohen says, this is a chance to regroup and innovate without the pressures of public ownership.

Shareholders Take a Hit, Customers Keep Roombas Running

While shareholders of the now-private company may face losses, millions of Roomba owners can breathe easier. Cohen reassures users that operations will continue uninterrupted. “iRobot is here to stay. We don’t expect any disruptions,” he said. The continuity promises that existing products, services, and updates will remain unaffected, maintaining trust among loyal customers.

Chinese Manufacturer Steps In as New Owner

The bankruptcy process is structured as a pre-packaged sale, likely to conclude next month. iRobot will be acquired by its Chinese contract manufacturer, Picea Robotics, which has also become its main creditor. This acquisition ensures that iRobot continues its operations while under new ownership, combining global brand recognition with the manufacturing and financial backing of Picea.

A Strategic Move for Future Innovation

Cohen frames the acquisition as more than a survival tactic—it’s a chance for iRobot to explore new avenues, including greener technology and smarter home automation solutions. By securing financial stability and maintaining its engineering and R&D talent in Boston, iRobot is poised to remain a key player in the evolving smart home ecosystem.

Lessons from a Challenging Year

The path to bankruptcy has not been easy. Over the last three years, iRobot experienced layoffs and failed acquisition attempts, including a high-profile deal with Amazon that fell through. Cohen’s approach now focuses on continuity, employee retention, and long-term brand strength, demonstrating that bankruptcy can be a tool for resilience rather than failure.

Looking Ahead: iRobot’s Market Reboot

As iRobot enters this new chapter, the company aims to balance operational stability with innovation. The CEO’s message is clear: bankruptcy doesn’t mean the end—it signals a transformation. For customers, employees, and the smart home industry, iRobot’s next steps will be closely watched as it seeks to redefine its position and potentially expand into new, sustainable technologies.