iRobot Files for Bankruptcy Protection Amid Rising Costs and Competition
iRobot has filed for bankruptcy protection under a pre-packaged Chapter 11 process, with Shenzhen-based Picea Robotics set to take ownership of the firm. The filing cites competition from Chinese rivals and tariffs as key pressures contributing to the company's financial difficulties.
Most iRobot devices are manufactured in Vietnam, but US import duties of 46% on Vietnam-made goods have increased the company's costs by approximately $23 million this year. Once valued at $3.56 billion in 2021, iRobot is now valued at around $140 million. Following the bankruptcy announcement, iRobot's shares fell more than 13% on Nasdaq.
Last year, a planned $1.7 billion takeover of iRobot by Amazon was blocked by the EU competition watchdog. Picea Robotics, the new owner, has research and development and manufacturing facilities in China and Vietnam, employs over 7,000 people, and has sold more than 20 million robotic vacuums worldwide.
