After 35 years, the maker of the Roomba robot vacuum filed for bankruptcy protection late Sunday night. Following issuing warnings earlier this year that it was fast running out of options, iRobot announced it will enter Chapter 11 protection and plans to be acquired by its contract manufacturer, the Chinese-based Picea Robotic.
The company says it will continue to operate “with no anticipated disruption to its app functionality, customer programs, global partners, supply chain relationships, or ongoing product support.” This should mean that, at least for now, your Roomba will continue cleaning your floors just as it did before.
The Massachusetts-based company has struggled for years amid increasing competition from Chinese manufacturers. One of the early pioneers in household robotics, iRobot was founded in 1990 and launched its first Roomba robot vacuum in 2002.
Two decades later, while iRobot is the Kleenex of the robot vacuum space, its market share had eroded significantly to companies like Ecovacs and Roborock. An acquisition by Amazon looked set to reverse the company’s declining fortunes, but the deal fell apart under regulatory scrutiny.
Since then, iRobot has reinvented its product line and cut prices to better compete with rivals, working with Picea Robotics to develop new Roombas. But it has continued to see revenue decline. Reuters reports that US tariffs hit the company hard, especially the 46 percent in Vietnam, where it makes robot vacuums for the US.
“Today’s announcement marks a pivotal milestone in securing iRobot’s long-term future,” said Gary Cohen, Chief Executive Officer at iRobot. “The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners.”
