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iRobot, the maker of the popular Roomba vacuum cleaner, filed for bankruptcy protection on December 14, saying it would be acquired by a Chinese manufacturer and taken private.
The company announced the move in a Dec. 14 news release, citing factors including increased competition from foreign rivals, high debt and rising costs due to tariffs. The filing comes about two years after the company’s failed attempt to merge with Amazon.
“Today’s announcement is a critical milestone in securing iRobot’s long-term future,” said Gary Cohen, CEO of iRobot. “This transaction strengthens our financial position and helps provide continuity for our consumers, customers and partners.
iRobot was founded in 1990 by three roboticists at the Massachusetts Institute of Technology. The company initially focused on defense and space research before debuting the Roomba robot vacuum in 2002.
iRobot will be acquired by Picea Robotics, the company’s flagship manufacturer, it added.
iRobot said it owes more than $3 million in unpaid duties, according to court records obtained by USA TODAY. New U.S. tariffs, particularly a 46% tariff on imports from Vietnam, where iRobot makes vacuum cleaners for the U.S. market, are also hurting the company.
iRobot is headquartered in Bedford, Massachusetts and has 274 employees, according to court documents.
What does iRobot’s bankruptcy filing mean for consumers?
Will my Roomba stop working?
iRobot said in a news release that its devices will continue to operate normally despite the bankruptcy filing.
“During the Chapter 11 process, iRobot will continue to operate as usual with no expected disruption to app functionality, customer programs, global partners, supply chain relationships, or ongoing product support,” the release states.
As part of the bankruptcy process, the company will be taken private and merged with Picea Robotics, which makes other home devices such as Shark and Anker.
What kind of products does iRobot manufacture?
Currently, iRobot sells a variety of robot vacuums and mops ranging from as low as $200 to as high as $1,400.
Among them are the Roomba Max 705 vacuum cleaner, which comes with an AutoEmpty dock, and the Roomba 105 combo robot, which combines both a vacuum cleaner and a mop.
Contributed by: Reuters
Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Contact us at fernando.cervantes@gannett.com and follow us at X @fern_cerv_.
