(Credit: Andrew Gebhart/PCMag)
The maker of Roomba robot vacuums, iRobot, has filed for bankruptcy protection in Delaware. Once the company is done with its chapter 11 process, it plans to go private and be acquired by its China-based primary manufacturer, Picea Robotics.
The move follows the company's September warnings of a reduction in revenue and a lack of options to withdraw capital amid rising competition and sales disruptions.
According to Reuters, the US's reciprocal tariffs have significantly impacted iRobot. Its Roomba robot vacuums sold in the country are made in Vietnam, where imports were initially subject to a 46% tariff.
For now, your Roomba robot vacuums will continue working as usual. The chapter 11 process is expected to be completed by February 2026, during which "iRobot will continue operating in the ordinary course with no anticipated disruption to its app functionality, customer programs, global partners, supply chain relationships, or ongoing product support," the company said in a press release.
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iRobot was founded by MIT roboticists Colin Angle, Helen Greiner, and Rodney Brooks in 1990, and the first Roomba launched in 2002. It began trading on the NASDAQ in 2005, and was valued at $3.56 billion in 2021, Reuters reports, citing LSEG's analysis.
Amazon's attempt to acquire the company fell through in early 2024 after the deal failed to receive regulatory approval in Europe.
Over time, iRobot's strong market share was diluted by the arrival of competitors, such as Ecovacs and Roborock. The company's profits and revenue have dropped steadily since 2021, and it is now valued at around $140 million.
Despite the setback, CEO Gary Cohen is optimistic about iRobot's long-term future. Cohen said, "The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners. Together, we will work to continue advancing the industry-leading Roomba robots and smart home technologies that have defined the iRobot brand for more than three decades."