Rising competition and reciprocal tariffs had reduced the company’s profits, Reuters reports.
The maker of Roomba robot vacuums, iRobot, has filed for bankruptcy protection in Delaware. Once the company is done with its chapter 11 process, it plans to go private and be acquired by its China-based primary manufacturer, Picea Robotics.
The move follows the company’s September warnings of a reduction in revenue and a lack of options to withdraw capital amid rising competition and sales disruptions.
According to Reuters, the US’s reciprocal tariffs have significantly impacted iRobot. Its Roomba robot vacuums sold in the country are made in Vietnam, where imports were initially subject to a 46% tariff.
