Roomba Maker Bankruptcy Deal May Pose Security Risk, US Says

The federal government told a judge that transactions in the bankruptcy of Roomba vacuum manufacturer iRobot Corp., which is set to be acquired by its main Chinese supplier, could be subject to a review for national security concerns.

A review by the Committee on Foreign Investment in the United States could affect the timing, terms, and completion of a transaction in the bankruptcy proceeding, the government said in a Tuesday filing in the US Bankruptcy Court for the District of Delaware.

Massachusetts-based iRobot filed for bankruptcy in December following a failed deal with Amazon, supply chain issues, and earnings decline following the Covid-19 pandemic. The Roomba vacuum maker said it would be taken over by Shenzhen PICEA Robotics Co.

A hearing on iRobot’s proposed bankruptcy plan is set for Thursday.

US Reps. Ritchie Torres (D-N.Y.) and Zach Nunn (R-Iowa) asked Treasury Secretary Scott Bessent on Jan. 8 to conduct a review of iRobot’s proposal to give the company to Shenzhen PICEA.

The congressmen said the takeover could result in sensitive US technology falling under foreign control and used to spy on Americans.

CFIUS reviews certain transactions to determine whether there is a potential national security risk and sometimes refers the matter to the president to determine whether to suspend or prohibit a transaction, according to the filing.

The transactions subject to review include any mergers or acquisitions that could result in foreign control of a US business; any “other investment” by a foreign person that results in an equity interest and access to specific information critical to certain US technologies; infrastructure or sensitive personal data; and any transfer that circumvents the Defense Production Act of 1950.

If the committee determines there isn’t a national security risk, the parties would be notified and any findings certified to Congress, the filing said.

iRobot received more than $90 million in compensation for the failed Amazon deal, but part of it was used to pay advisory fees and to repay a portion of a $200 million bridge loan from Carlyle Group Inc.

Shenzhen PICEA subsidiary Santrum Hong Kong Co. in November acquired $191 million of outstanding debt from iRobot. The Chinese company has been working to secure new capital and address the outstanding debt with the vacuum manufacturer.

Paul, Weiss, Rifkind, Wharton & Garrison LLP and Young Conaway Stargatt & Taylor LLP represent iRobot. White & Case LLP and Richards, Layton & Finger PA represent Shenzhen PICEA.

The case is iRobot Corp., Bankr. D. Del., No. 25-bk-12197, notice 1/20/26.