iRobot, the company known for its Roomba robot vacuums, has filed for bankruptcy. This development follows a period of financial challenges, including a failed merger with Amazon, accumulated debt, and import tariffs. The company is now being acquired by its primary manufacturer, Shenzhen Picea Robotics, based in China.
Most Roomba units are manufactured in Vietnam, which led iRobot to incur import fees under President Trump's trade policies. According to its bankruptcy filing, iRobot owes the U.S. Customs and Border Protection $3.4 million in unpaid tariffs. The company also lists an outstanding debt of nearly $100 million to Shenzhen Picea Robotics, the entity that will assume control of iRobot.
iRobot was founded in 1990 by researchers from the Massachusetts Institute of Technology. Initially, the company developed devices for the U.S. military, exploration purposes (e.g., the Great Pyramid of Giza), and environmental monitoring (e.g., the Gulf of Mexico oil spill). It later expanded into consumer products, introducing robotic cleaning devices such as the Roomba.
In recent years, iRobot's financial performance has been affected by competition, particularly from foreign manufacturers offering lower-priced smart vacuums, including Chinese brands.
Amazon's proposed acquisition of iRobot for $1.4 billion was terminated last year due to scrutiny from European and U.S. competition regulators. This left iRobot with a $200 million loan, which it had secured to maintain operations during the merger review process.
The company has reported financial losses throughout the current year. In its most recent quarter, iRobot's U.S. revenue decreased by 33%. In March, the company had issued warnings regarding a potential bankruptcy, citing concerns related to consumer demand, competitive pressures, and tariffs.
Under the terms of the bankruptcy plan, iRobot will transition into a private entity as part of Picea Robotics. Picea Robotics manufactures its own brand of household devices under the name 3i and also lists other brands such as Shark and Anker (maker of Eufy vacuums) on its website.