Thousands of Australians who were early adopters of Roomba robotic vacuum cleaners could soon face the risk of their devices becoming unusable, following the company’s sudden bankruptcy announcement.

The news broke overnight, confirming what ChannelNews had previously warned: iRobot, the US-based company behind the Roomba brand, has formally declared bankruptcy.

At this stage, iRobot claims that Roomba devices sold in Australia through Melbourne-based distributor iXLHome Distribution will continue to operate normally while the company undergoes a restructuring process.

However, the long-struggling business now finds itself in a dire position. Its only potential lifeline appears to be interest from a Chinese manufacturer seeking to acquire the Roomba brand name—though reportedly not the company’s management, which has been widely criticised for poor decision-making and declining sales.

Despite being a pioneer in consumer robotics, iRobot failed to keep pace with rapidly advancing Chinese competitors. Brands such as Ecovacs successfully delivered cheaper, more technologically advanced robotic vacuum cleaners, leading many consumers to conclude that Chinese alternatives had overtaken Roomba in both performance and value.

The company’s troubles deepened in 2024 when a proposed acquisition by Amazon collapsed due to regulatory concerns. The failed deal triggered a sharp fall in iRobot’s share price, compounding existing financial pressures as sales continued to decline and cash flow tightened.

Founded in 1990, iRobot helped bring autonomous robotic vacuums into mainstream households. Many newer Roomba models rely heavily on cloud-based services and smartphone apps, prompting concerns among users that their devices could be “bricked” if the company ceased operations. iRobot has attempted to reassure customers, stating it does not anticipate disruptions to product support or app functionality.

In recent regulatory filings, iRobot acknowledged that bankruptcy was a likely outcome. The company currently owes $352 million to its primary contract manufacturer, Picea, which operates facilities in China and Vietnam. Nearly $91 million of that debt is already overdue.

As part of its restructuring plan announced last night, iRobot confirmed that Picea will assume 100 percent ownership of the company. iRobot says this move will allow the business to continue operating, at least for the foreseeable future.