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<p>iRobot Corporation shares experienced a devastating collapse in <a href="https://tokenist.com/investing/how-to-trade-after-hours/" rel="noopener noreferrer nofollow">premarket trading</a> on December 15, 2025, plummeting over 82% to $0.7648 after the Roomba maker filed for Chapter 11 bankruptcy protection. The dramatic decline followed the company’s <a href="https://www.prnewswire.com/news-releases/irobot-announces-strategic-transaction-to-drive-long-term-growth-plan-302641744.html" target="_blank" rel="noopener noreferrer nofollow">announcement</a> that it had entered into a Restructuring Support Agreement with its secured lender and primary contract manufacturer, Shenzhen PICEA Robotics and Santrum Hong Kong.</p>
<p>The bankruptcy filing, submitted to the District of Delaware, marks a stunning fall for a company that was valued at $3.56 billion during the pandemic-fueled demand of 2021 but is now worth approximately $140 million.</p>
<h3 id="chapter-11-filing-clears-path-for-picea-robotics-takeover">Chapter 11 Filing Clears Path for Picea Robotics Takeover</h3>
<p>iRobot voluntarily commenced a pre-packaged Chapter 11 bankruptcy process in Delaware on Monday, with the company expecting to complete the restructuring by February 2026. Under the Restructuring Support Agreement, Picea Robotics will acquire 100% of iRobot’s equity through a court-supervised process while canceling approximately $190 million in debt from a 2023 loan and an additional $74 million owed under their manufacturing agreement.</p>
<p>The bankruptcy filing reveals that iRobot has estimated assets between $100 million and $500 million, with liabilities in the same range.</p>
<p>Despite the bankruptcy, iRobot has assured stakeholders that operations will continue without disruption to app functionality, customer programs, global partnerships, supply chain relationships, or product support.</p>
<p>The company, which employs 274 people and is headquartered in Bedford, Massachusetts, emphasized that other creditors and suppliers will be paid in full according to the bankruptcy plan. This represents a significant shift for the company founded in 1990 by three MIT roboticists, which found massive success with the Roomba robotic vacuum after its 2002 debut.</p>
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<h3 id="years-of-losses-tariffs-and-competition-lead-to-collapse">Years of Losses, Tariffs, and Competition Lead to Collapse</h3>
<p>iRobot’s path to bankruptcy was marked by multiple financial headwinds that eroded its once-dominant market position. The company generated approximately $682 million in total revenue in 2024, but faced intense competition from Chinese rivals like Ecovacs Robotics, forcing it to lower prices and make substantial investments in technological upgrades.</p>
<p>New U.S. tariffs proved particularly damaging, with a 46% levy on imports from Vietnam, where iRobot manufactures vacuum cleaners for the U.S. market, adding $23 million in costs in 2025 alone.</p>
<p>The company’s struggles intensified after Amazon’s proposed $1.4 billion acquisition fell apart due to a European competition investigation. At close on December 12, IRBT traded at $4.32, down 13.60%, before the premarket collapse to $0.7648 at 5:38:56 AM EST. The stock’s 52-week range of $1.40 to $13.06 reflects the company’s turbulent year, with year-to-date returns showing a devastating 44.26% decline and five-year returns down 94.19%.</p>
<p>Despite maintaining approximately 42% of the U.S. market share and 65% of the Japanese market share for robotic vacuum cleaners, iRobot could not overcome the combination of pricing pressures, tariff costs, and mounting debt obligations.</p>
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em> <em>All stock prices were quoted at the time of writing.</em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/why-did-irobot-shares-collapse-over-80-in-premarket/">Why Did iRobot Shares Collapse Over 80% in Premarket?</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Why Did iRobot Shares Collapse Over 80% in Premarket?

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