The Robotic vacuum company iRobot Corporation (NASDAQ:IRBT), best known for the Roomba, filed for Chapter 11 bankruptcy on Sunday. Now, a subsequent deal to sell the company to its China-based supplier, Shenzhen Picea Robotics, is causing a stir online with consumers directing their ire at a member of Congress.



<h2>iRobot 2022 Deal From Amazon Opposed By Elizabeth Warren</h2>



Observers point to the failed 2022 merger with Amazon.com Inc (NASDAQ:AMZN) — a $1.7 billion deal that was blocked by regulators and lawmakers like Senator Elizabeth Warren (D-Mass.) — as a factor that compounded the company’s struggles.



But there’s more to it than that. While iRobot was once a leader in the robotic vacuum space, it faced mounting financial pressures stemming from overseas competition (i.e., Ecovacs and Anker), rising costs due to new tariffs on goods made in Vietnam, and its own debt load. 



Under President Donald Trump‘s trade policies, the company faced new import fees, leaving it with $3.4 million in unpaid tariffs to U.S. Customs. Adding to the burden, iRobot owes nearly $100 million to Picea, the Chinese firm now taking control of the company. 



Despite assurances that Roombas will continue to operate, the public sentiment has been one of disappointment, with many still attributing blame to Warren who tweeted in September 2022 that she had “serious concerns” about the Amazon/iRobot deal.



“We're asking the [Federal Trade Commission] to oppose this proposed deal to protect competition and consumers. Amazon shouldn't be allowed to just buy their way out of competing,&#34; Warren wrote at the time. 



That tweet from three years ago now finds a Community Note attached to it on social media.



&#34;Amazon does not produce robotic vacuum cleaners, meaning the deal likely would not have reduced competition. As a result of the blocked merger, iRobot filed for Chapter 11 bankruptcy and will be taken over by a Chinese robotics manufacturer, Shenzhen PICEA Robotics Co,&#34; the community note reads.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div>
<blockquote>.@RepMondaire and I have serious concerns about Amazon's deal to buy iRobot. We're asking the @FTC to oppose this proposed deal to protect competition and consumers. @Amazon shouldn't be allowed to just buy their way out of competing.https://t.co/dvZb6tqgGV— Elizabeth Warren (@SenWarren) September 29, 2022</blockquote>
</div></figure>



The European Union also planned to block the deal, stating it would restrict competition in the robot vacuum market. As a result, Amazon abandoned its plans to acquire iRobot in January 2024.



&#34;Good job Sen Warren, you blocked Amazon from rescuing iRobot and in the process killed an American company while transferring its core assets to China,&#34; Boom Supersonic CEO Blake Scholl tweeted.



Investor and All-In Podcast member Jason Calacanis took on both Warren and former FTC Chair Lina Khan with his own tweet: “Way to destroy another great American company @SenWarren @linamkhan – and gift to (checks notes) the Communists!&#34; 



Investing podcaster Joseph Carlson also shared his take: &#34;Mission accomplished. Evil Amazon was blocked from an acquisition that would have supported the financial state of the company. Now your Walmarts and Costcos are filled with Chinese robot vaccums.”



Since the Amazon deal was called off, iRobot has gone through several rounds of job cuts. The new acquisition could lead to more. Coincidentally, iRobot is headquartered in Bedford, Massachusetts, which counts Warren and Edward Markey (D-Mass.) as the region's U.S. senators.



This means that the district Warren represents could see job losses.



Read Also: Why iRobot Stock Could Pull A ‘Zombie Squeeze’ — The Walking Debt



<h2>Deal Blocks Leading to Bankruptcy</h2>



The iRobot bankruptcy isn’t the only deal to be blocked over anticompetitive concerns, only to later file for bankruptcy.



JetBlue Airways Corporation (NASDAQ:JBLU) and Spirit Airlines announced a merger in 2023. Some, including Warren, opposed the merger.



The Department of Justice blocked the merger, which would have created the fifth-largest U.S. airline. President Joe Biden praised the move at the time.



“Today’s ruling is a victory for consumers everywhere who want lower prices and more choices. My Administration will continue to fight to protect consumers and enforce our antitrust laws,&#34; Biden said at the time.



The judge said the merger would reduce competition for consumers and could lead to higher ticket costs and fewer available flights.



Spirit Airlines declared bankruptcy twice in 2024 and 2025 and has struggled since the deal was called off, prompting questions of what would have happened if the agreement had been approved initially.



Read Next: 



<ul>
<li>Spirit Airlines To Cut Jobs As It Plans To Reduce Capacity By 25% Amid Financial Woes: Report</li>
</ul>



Image: Shutterstock

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iRobot Corporation, known for its Roomba vacuums, filed for Chapter 11 bankruptcy, with its acquisition by Shenzhen Picea Robotics causing public backlash. The failed 2022 Amazon merger, opposed by Senator Elizabeth Warren, is cited as a factor in iRobot's struggles. Warren's opposition aimed to protect competition, but critics argue it led to iRobot's downfall and transfer to a Chinese firm. The situation highlights broader concerns about antitrust actions and their impact on American companies.

- iRobot Corporation, known for its Roomba, filed for Chapter 11 bankruptcy and is set to be sold to Shenzhen Picea Robotics, a Chinese supplier.  
- The company's struggles were exacerbated by a blocked $1.7 billion merger with Amazon, rising competition, and financial pressures, including unpaid tariffs and significant debt.  
- Public sentiment has turned against lawmakers like Senator Elizabeth Warren, who opposed the Amazon deal, with critics arguing that her actions contributed to iRobot's decline and subsequent bankruptcy.

Elizabeth Warren Put On Blast For iRobot Bankruptcy Years After Opposing Amazon Deal: 'Way To Destroy Another Great American Company'