iRobot, the U.S. company behind the Roomba robotic vacuum cleaner, has filed for bankruptcy protection as mounting competition from Chinese manufacturers and higher trade costs eroded its finances.
The company has entered a pre-packaged Chapter 11 process that will see its main manufacturing partner, Shenzhen-based Picea Robotics, assume ownership. Court filings show iRobot has been forced to slash prices and invest heavily in new technology to remain competitive, while US tariffs on imports from Vietnam — where most devices sold in America are made — added about $23 million to its costs this year.
Once buoyed by pandemic-era demand and valued at more than $3.5 billion in 2021, iRobot’s market value has fallen to around $140 million, with its shares dropping sharply on Friday.
The company said the restructuring is not expected to disrupt its products, app, supply chain or customer support. Founded in 1990 by researchers from MIT’s Artificial Intelligence Lab, iRobot shifted from defence and space work to consumer robotics with the launch of the Roomba in 2002, which still holds a significant share of the US and Japanese markets. The company’s struggles follow the collapse of a proposed $1.7 billion Amazon takeover last year after opposition from European regulators.
Image credit: Onur Binay
