Why did iRobot, maker of the Roomba, file for bankruptcy?

iRobot filed for bankruptcy due to intense competition from Chinese manufacturers who benefited from government subsidies, and a blocked acquisition by Amazon.

What role did Chinese subsidies play in iRobot's downfall?

Chinese subsidies allegedly created a protected market for competitors, giving them an advantage in innovation and market share against iRobot.

Why was the Amazon acquisition of iRobot blocked?

The Amazon acquisition was blocked by the FTC and European regulators due to concerns about its potential competitive effects and impact on innovation.

Home / Business and Economy / iRobot's Fall: Chinese Subsidies Cripple Roomba Maker

iRobot's Fall: Chinese Subsidies Cripple Roomba Maker

22 Dec

•

Summary

iRobot, maker of the Roomba, filed for bankruptcy protection in December 2025.
China's subsidies created a protected market for competitors like Roborock.
An attempted acquisition by Amazon was blocked by antitrust regulators.

iRobot's Fall: Chinese Subsidies Cripple Roomba Maker

iRobot, the creator of the Roomba robotic vacuum, filed for Chapter 11 bankruptcy protection in December 2025, signaling the end of an era for the pioneering robotics company. Founder Colin Angle attributed the company's struggles significantly to a new wave of Chinese competitors who benefited from substantial government subsidies.

Angle explained that these subsidies fostered a "protected market" for Chinese manufacturers, allowing them to rapidly innovate and challenge iRobot's dominance. Companies such as Roborock, Ecovacs, and Dreame leveraged this environment, outpacing iRobot, which had once led the market and even briefly held the top position in China. Despite reaching peak revenue in 2021, iRobot faced mounting pressure from these well-supported rivals.