iRobot Files for Bankruptcy Amid Rising Tariffs
The firm will be acquired by Shenzhen-based Picea Robotics, its primary product manufacturer, through the "pre-packaged Chapter 11 process."
A statement released on Sunday noted that iRobot was compelled to reduce its prices and invest heavily in new technologies because of the tough market conditions.
Most of iRobot's devices for the US market are produced in Vietnam, where the country's 46% tariffs have raised costs by $23 million this year, according to the company.
In 2021, iRobot had a valuation of $3.56 billion, boosted by pandemic-driven demand for its products. Its current valuation stands at roughly $140 million.
iRobot has indicated that its app, supply chain, and product support operations are not expected to be impacted by the bankruptcy filing.
Founded in 1990 by three members of the Massachusetts Institute of Technology's (MIT) Artificial Intelligence Lab, iRobot released the Roomba in 2002. The company claims the Roomba holds around 42% of the robotic vacuum market in the US and 65% in Japan.
Last year, the European Union's competition authority blocked Amazon's intended $1.7 billion purchase of iRobot.
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