The US company behind the Roomba smart vacuum cleaner, iRobot, has filed for bankruptcy after facing competition from Chinese rivals and being hit by tariffs.
Under the so-called pre-packaged Chapter 11 process, the company’s main manufacturer, Shenzhen-based Picea Robotics, will take ownership of its devices.
The difficult business outlook had forced iRobot to reduce its prices and make significant investments in new technology, according to documents filed Sunday.
US import duties of 46% on products from Vietnam, where most of iRobot’s devices for the US market are made, increased its costs by $23m (£17.2m) this year, the company said.
The loss-making company was valued at $3.56 billion in 2021 after the pandemic helped drive strong demand for its products. It is now valued at around $140 million.
On Friday, iRobot shares fell more than 13% on New York’s tech-heavy Nasdaq trading platform.
Founded in 1990 by three members of the Artificial Intelligence Laboratory at the Massachusetts Institute of Technology (MIT), iRobot initially focused on space and defense technology before launching the Roomba in 2002.
Last year, the European Union’s competition watchdog derailed a planned $1.7 billion acquisition deal by online retail giant Amazon.
Picea is a manufacturer of robotic vacuum cleaners, with research, development and production facilities in China and Vietnam.
It has more than 7,000 employees worldwide and has sold more than 20 million robotic vacuum cleaners.
