Post: iRobot files for bankruptcy | The Verge

iRobot files for bankruptcy | The Verge

After 35 years, the maker of the Roomba robot vacuum filed for bankruptcy protection late Sunday night. After warnings earlier this year that it was running out of options, Irobot says It is entering Chapter 11 protection and will be acquired by its contract manufacturer, China-based PICEA Robotics.

The company says it will continue to operate “without any foreseeable disruption to its app functionality, customer programs, global partners, supply chain relationships, or ongoing product support.” This should mean that, at least for now, your Roomba will continue to clean your floors as it did before.

The Massachusetts-based company has struggled for years amid growing competition from Chinese manufacturers. One of the early pioneers of home robotics, Aerobot was founded in 1990 and launched its first Roomba robot vacuum in 2002.

After two decades, while Irobot is the Kleenex of the robot vacuum space, its market share has been significantly eroded by companies like Aquavox and Rubrock. An acquisition by Amazon in 2022 appeared poised to reverse the company’s declining fortunes, but the deal fell apart under regulatory scrutiny.

Since then, Aerobot has revitalized its product line and cut prices to better compete with competitors, and has teamed up with PICEA Robotics to develop new Roombas. But it has continued to reduce revenues. Reuters reports U.S. tariffs hit the company hard, especially 46 percent in Vietnam, where it makes robot vacuums for the U.S.

“Today’s announcement marks an important milestone in achieving the long-term future of Aerobot,” said Gary Cohen, chief executive officer of Aerobot. “This transaction will strengthen our financial position and help provide continuity for our customers, customers and partners.”