iRobot Files for Bankruptcy Protection, Shenzhen-based Manufacturer to Take Ownership
iRobot has filed for bankruptcy protection under a pre-packaged Chapter 11 process. Shenzhen-based Picea Robotics, which is iRobot's main device manufacturer, will assume ownership of the firm.
The company faced increased costs due to a 46% import duty on goods from Vietnam, which added $23 million to iRobot's expenses this year. Once valued at $3.56 billion in 2021, iRobot's current valuation has fallen to approximately $140 million. Following the bankruptcy filing, iRobot's shares dropped more than 13% on the Nasdaq.
Despite the filing, it is not expected to disrupt iRobot's app, supply chains, or product support. Founded in 1990 by three alumni of the MIT Artificial Intelligence Lab, iRobot launched the Roomba robotic vacuum cleaner in 2002. The Roomba brand holds about 42% of the US robotic vacuum market and 65% of the Japanese market.
Picea Robotics employs over 7,000 people worldwide and has sold more than 20 million robotic vacuum cleaners. Its research and development and production facilities are located in China and Vietnam.
