WASHINGTON (dpa-AFX) - iRobot, the U.S. company that helped bring robot vacuums into millions of American homes, has filed for bankruptcy after struggling with rising costs, intense competition, and heavy debt.
Best known for its Roomba vacuum, the company's financial troubles accelerated following the collapse of its proposed $1.4 billion acquisition by Amazon, which was blocked by U.S. and European regulators last year.
Founded in 1990 by researchers from the Massachusetts Institute of Technology, iRobot began as a robotics innovator working on military, scientific, and industrial projects before finding commercial success with home cleaning devices.
In recent years, however, the company has faced pressure from lower-priced smart vacuums produced by foreign competitors, particularly Chinese manufacturers.
iRobot has also been affected by tariffs. While many of its products are made in Vietnam, the company said it owes $3.4 million in unpaid U.S. import duties and nearly $100 million to its main supplier, Shenzhen Picea Robotics.
That supplier is now set to take control of iRobot as part of the bankruptcy process, moving the company into private ownership.
Despite the restructuring, iRobot has said existing devices will continue to function normally.
The company reported a 33% drop in U.S. revenue in its most recent quarter, underscoring the challenges facing one of the early pioneers of consumer robotics.
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