(Yicai) Jan. 7 -- iRobot, the US maker of Roomba robot vacuum cleaners, skipped the CES 2026 as it struggles to stabilize operations following a bankruptcy filing and an agreed takeover by its largest creditor, Shenzhen-based Picea Robotics.

The absence underscores iRobot’s prolonged decline and the growing competitive gap with Chinese robot vacuum cleaner makers, including Roborock Technology, Dreame Technology, and Narwal Robotics, which all appeared at the ongoing annual trade show in Las Vegas to debut new products. iRobot reached a deal last month to convert Picea’s debt claims into 100 percent equity after filing for bankruptcy on Dec. 14.

“iRobot has no new products to support brand exposure, so its absence is reasonable,” said Wang Hao, who is familiar with Picea’s internal operations. Even during periods of normal operation, iRobot lagged behind Chinese rivals in the speed of product upgrades, which is one of the reasons it has fallen into its current predicament, Wang added.

Compared with Chinese companies, iRobot has trailed for years in innovation and technological capabilities, Wang noted. The most critical task now is to halt the decline and stabilize operations, before gradually trying this year or next to return the business to a positive trajectory, he said.

Picea’s acquisition of iRobot was not an active strategic choice, Wang said. Deteriorating business conditions left iRobot unable to pay for products supplied by Picea, making the takeover “a choice made out of necessity to recover losses.” The Chinese firm paid little cash for the deal, with most of the consideration consisting of unpaid receivables owed by iRobot.

Picea, a major contract manufacturer and the owner of smart home brand 3i, obtained agency rights for iRobot in China in August last year and said it would unlock new growth potential through localized operations in the Chinese market. Wang, however, believes iRobot has “no chance at all” in China, as Chinese consumers are highly discerning, while the prospects for reorganizing overseas markets are greater.

The acquisition does offer Picea two potential advantages. First, iRobot still enjoys relatively high brand loyalty in some developed economies, remaining the top robot vacuum cleaner brand in Japan. Second, it brings an established portfolio of overseas technology patents.

A Difficult Choice Between Two Brands

Once the deal is completed, Picea will immediately face difficult choices over resource allocation: whether to prioritize its own brand 3i or the iRobot brand in terms of capital and talent investment.

Wang said it is unlikely Picea would nurture one brand while abandoning the other. Chairman Yang Yong must reposition and reallocate resources between the two, a task made harder by the fact that few companies globally operate two robot vacuum cleaner brands at the same time. Roborock, Ecovacs Robotics, and Narwal, for example, all focus on a single brand. “How to allocate resources for product layout between the two brands will be a big test for the future management team,” Wang said.

Even if iRobot can be revived under Picea’s ownership, the company will still face the challenge of balancing business-to-business and business-to-consumer operations.

Picea is a major contract manufacturer of robot vacuum cleaners. After acquiring iRobot, it may risk losing foundry clients. “If it feels that the profit margin and development prospects in the B2C business are better, it will definitely gradually cut its B2B business and make up for the losses in the B2B business through the growth in the B2C business,” Wang said. “It can only focus on one, and it will definitely not work if it wants both.”

Similar decisions have been made before in the industry. Ecovacs began as an original equipment manufacturer and gradually phased out its OEM business after establishing its own consumer brand. Roborock also started as a foundry for Xiaomi and later abandoned OEM operations after building its own brand.

If Yang treats the acquisition of iRobot as a stopgap measure, it cannot be ruled out that he will resell the company after stabilizing operations. “It is possible to resell iRobot if he wants to optimize the financial statements and make the operating indicators look good by making personnel adjustments,” Wang said.

Editor: Emmi Laine