Core Viewpoint - iRobot has filed for Chapter 11 bankruptcy protection, transferring its business to two Chinese companies and going private, marking a significant decline from its previous market dominance [1][4][6]. Company Overview - iRobot was founded in 1990 by MIT engineers and initially focused on defense and space projects before launching the Roomba robotic vacuum in 2002, which revolutionized the consumer robotics market [3][9]. - The company achieved peak annual revenue of nearly $1.6 billion in 2021, selling over 40 million units and commanding approximately 60% of the global market share by value [10][11]. Recent Developments - The company has faced increasing competition from lower-priced Chinese rivals and rising costs due to tariffs, leading to a significant decline in stock value, with shares down 92% year-to-date as of the bankruptcy filing [2][4][11]. - iRobot's restructuring agreement involves acquisition by Shenzhen Picea Robotics Co. and a subsidiary, with the main lender forgiving $190 million in loans and an additional $74 million in debt [6][7]. Market Dynamics - The competitive landscape has shifted dramatically since 2021, with Chinese companies introducing advanced features at lower prices, which iRobot struggled to match until its 2025 product lineup [11][13]. - Tariffs have added significant costs, with iRobot reporting an increase of $23 million in 2025 due to tariff-related expenses, complicating future planning [13]. Stock Performance - iRobot's stock experienced extreme volatility, including a brief rally driven by retail traders speculating on a short squeeze, but the bankruptcy announcement led to a dramatic sell-off, erasing gains [2][5][15]. - Existing common shareholders are expected to be wiped out under the restructuring plan, with a high likelihood of Nasdaq delisting the stock [15].