iRobot (IRBT), the maker of the Roomba vacuum cleaner, has filed for bankruptcy.
The Boston-based company filed for Chapter 11 protection from its creditors and said that it intends to go private and delist its stock from the Nasdaq (NDAQ) exchange on which it trades.
Additionally, iRobot said that it will now be bought by Picea Robotics, its primary manufacturer. The company first raised concerns about its ability to stay in business in March of this year.
The robotics manufacturer generated about $682 million U.S. in total revenue in 2024, but its profits have been hurt by competition from Chinese rivals such as Ecovacs Robotics.
Management have also said in recent months that it has been hurt by U.S. tariffs, especially a 46% duty on imports from Vietnam where iRobot manufactures most of its vacuum cleaners.
In its bankruptcy filing, iRobot said that increased competition forced it to lower prices and make substantial investments in technological upgrades, hurting its profitability.
Amazon (AMZN) tried to buy iRobot a few years ago for $1.4 billion U.S. but the deal ended up being scuttled by regulators over competition concerns.
iRobot currently has about $190 million U.S. of debt, according to the company.
Under iRobot’s bankruptcy plan, Picea, a China-based manufacturer, will take 100% of the company’s equity and cancel the $190 million U.S. of debt.
Other creditors and suppliers will be paid in full, according to iRobot’s bankruptcy court filings.
iRobot was founded in 1990 by three Massachusetts Institute of Technology (M.I.T.) robotics students. It launched the Roomba robotic vacuum in 2002 and it was an immediate success.
IRBT stock is down 74% in premarket trading on Dec. 15 and trading at $1.11 U.S. per share.
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