iRobot, the maker of the popular Roomba vacuum cleaner, has filed for bankruptcy protection, marking a significant downturn for the once-thriving tech company. This decision comes as a result of intense competition from Chinese rivals and the burden of US import tariffs. The company's main manufacturer, Picea Robotics, based in Shenzhen, will take ownership of iRobot under a pre-packaged Chapter 11 process. The challenging business environment has forced iRobot to lower prices and invest heavily in new technology, leading to increased costs and a loss in market value. The company's stock price fell by over 13% on the Nasdaq trading platform in New York on Friday, reflecting the financial strain. Despite the bankruptcy filing, iRobot assures that its app, supply chains, and product support will remain unaffected. Founded in 1990 by MIT alumni, iRobot initially focused on defense and space technology before introducing the Roomba in 2002. The Roomba currently dominates the US market with a 42% share and holds a strong 65% share in Japan. However, a potential $1.7 billion takeover deal by Amazon was previously blocked by the European Union's competition watchdog. The US import duties of 46% on goods from Vietnam, where iRobot's devices are primarily manufactured, have added a significant $23 million to the company's costs this year. The company's value has plummeted from $3.56 billion in 2021 to around $140 million currently. Despite these challenges, iRobot remains committed to its customers, ensuring uninterrupted app functionality, supply chain operations, and product support.
