--- title: "China's Picea Robotics to Keep, Expand iRobot Brand Overseas After Buying Bankrupt US Roomba Maker, Source Says" type: "News" locale: "en" url: "https://longbridge.com/en/news/270106974.md" description: "Picea Robotics, iRobot's largest creditor and contract manufacturer, will retain and expand the iRobot brand overseas, including in China, after acquiring the bankrupt US Roomba maker. Picea values iRobot's brand equity and technology. iRobot filed for bankruptcy on Dec. 14 and signed a deal with Picea to convert debt claims into equity. Picea aims to grow the smart cleaning robot market, with iRobot holding a significant share in North America. The acquisition could reshape the global market, with technology synergies and operational effectiveness being key factors." datetime: "2025-12-18T05:11:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/270106974.md) - [en](https://longbridge.com/en/news/270106974.md) - [zh-HK](https://longbridge.com/zh-HK/news/270106974.md) --- # China's Picea Robotics to Keep, Expand iRobot Brand Overseas After Buying Bankrupt US Roomba Maker, Source Says (Yicai) Dec. 18 -- Picea Robotics, iRobot's largest creditor and contract manufacturer, will retain the brand of the bankrupt US maker of Roomba robot vacuum cleaners, which it recently agreed to acquire, and expand its operations overseas, including in China, a company official told Yicai. "What Picea values most is iRobot's brand equity and technological foundation," the source said yesterday. The US firm has deep tech reserves in smart navigation, path mapping, automated cleaning algorithms, and integrated hardware and software solutions, as well as profound insights into home cleaning scenarios and consumer needs, the person added. On Dec. 14, iRobot filed for chapter 11 bankruptcy protection in Delaware after struggling amid growing competition from Chinese rivals. In addition, it signed a deal with Picea by which the Chinese firm will convert its debt claims into 100 percent equity of the Massachusetts-based firm through a court-supervised restructuring. "We hope Picea and iRobot can work together to expand the smart cleaning robot market, allowing more families to experience robot vacuum cleaners, given that their penetration rate remains below 10 percent worldwide," the source noted. IRobot fell out of the top five by global robot vacuum cleaners shipments for the first time in the nine months ended Sept. 30, with the spots taken by Chinese companies, according to data from International Data Corporation. Stone Technology led with 22 percent, followed by Ecovacs Robotics with 14 percent, Dreame Technology with 12 percent, Xiaomi with 10 percent, and Narwal Robotics with 7.5 percent. Picea bought USD190.7 million of iRobot's debt from US investment firm Carlyle last month, making it the vacuum cleaner maker's largest creditor when combined with the USD161.5 million in manufacturing costs it was already owed. It has extended its covenant waivers until Jan. 15. In addition, Picea secured iRobot's regional distribution rights for China in August, positioning itself ahead of the acquisition. The Chinese firm ranks among the world's largest robot vacuum cleaners original design manufacturers, possessing overseas supply chain capabilities, with its annual shipments exceeding 6.5 million units and sales topping 20 million. If the deal goes well, Picea could potentially reshape the competitive landscape in the global and US robot vacuum cleaner market, with iRobot holding around 20 percent to 30 percent of the North American market, a senior industry source said to Yicai. "The industry is still fundamentally in a demand cultivation phase, where it's about growing the pie, not dividing it," the official from Picea pointed out, adding that with the global robot vacuum cleaners' penetration rate at below 10 percent, collaboration to expand market space and enhance product value matters more than competition. The integration's ultimate impact on market dynamics will depend on subsequent technology synergies, product execution, and global operational effectiveness, Stone Technology told Yicai. Strategic missteps in technology direction and tariff pressures were the two key reasons for iRobot's struggles, according to industry analysts. The company used to adhere to visual navigation tech, missing the market shift toward laser and hybrid navigation, while rising US tariffs have significantly increased its expenses, they added. In 2019, iRobot founder Colin Angle told Yicai that even a 10 percent tariff costs the company USD25 million a year. In addition, because of supply chain relocation risks and tariff pressures, it began posting losses in 2021, which reached USD240 million in 2022. To circumvent tariffs, iRobot shifted production from China to Malaysia and Vietnam, but when the US imposed tariffs of up to 46 percent on Vietnamese robot vacuum cleaner imports this year, it triggered additional costs of USD23 million for the firm. Editor: Martin Kadiev ### Related Stocks - [IRBT.US](https://longbridge.com/en/quote/IRBT.US.md) - [IRBTQ.US](https://longbridge.com/en/quote/IRBTQ.US.md) ## Related News & Research - [Who is Picea Robotics, Roomba’s new owner?](https://longbridge.com/en/news/269691434.md) - [Why Is iRobot Stock Crashing Monday?](https://longbridge.com/en/news/269745038.md) - [Figure AI's robots can make a bed faster than you](https://longbridge.com/en/news/285805765.md) - [Xiao-I Corp (ADR) trading halted, news pending](https://longbridge.com/en/news/285798899.md) - [The creator of Roomba is back with a furry robot companion](https://longbridge.com/en/news/285101891.md)