Key Stats for iRobot Stock
- Pre-market Price Change for iRobot stock: -70%
- $IRBT Share Price as of Dec. 12: $4.32
- 52-Week High: $13.06
- $IRBT Stock Price Target: $11.94
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What Happened?
iRobot (IRBT) stock collapsed on Monday after the Roomba maker filed for Chapter 11 bankruptcy protection and announced it will be acquired by its Chinese manufacturer, Picea Robotics.
The company’s shareholders will likely receive nothing, as all existing equity will be cancelled under the bankruptcy plan.
The bankruptcy filing comes after years of mounting pressure on the business. iRobot stock has been struggling with fierce competition from cheaper Chinese rivals like Ecovacs Robotics, which forced it to slash prices and pour money into product upgrades to stay competitive.
Adding to the company’s troubles, new U.S. tariffs hit iRobot hard. A 46% tariff on Vietnamese imports hurt the company’s bottom line since that’s where it manufactures vacuum cleaners for the American market.
According to court filings, these tariffs cost the company $23 million in 2025 alone.
iRobot also carries roughly $190 million in debt from a 2023 loan, plus another $74 million owed to Picea under their manufacturing agreement.
After Amazon’s $1.4 billion acquisition attempt fell apart due to European regulatory concerns, iRobot fell behind on payments to Picea.
The Chinese manufacturer then acquired iRobot’s debt from Carlyle Group and is now taking full ownership through bankruptcy.
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What the Market Is Telling Us About IRBT Stock
The complete wipeout of iRobot stock reflects the harsh reality that shareholders will receive zero recovery on their investment once the bankruptcy plan receives court approval.
The company expects to complete the Chapter 11 process by February 2026, at which point it will become a private company wholly owned by Picea.
While iRobot maintains strong market positions in the U.S. (42% market share) and Japan (65% market share) for robotic vacuum cleaners, the market is making it clear that dominant market share alone isn’t enough when you’re losing money and drowning in debt.
The company’s valuation plummeted from $3.56 billion in 2021 to just $140 million before today’s bankruptcy announcement.
For current iRobot shareholders, the message is brutal: their equity will be cancelled with no compensation.
The bankruptcy plan prioritizes paying creditors and suppliers in full, but leaves nothing for stockholders.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
