iRobot, the company responsible for the widely popular Roomba vacuum, has filed for bankruptcy protection after 35 years.
After issuing warnings last month that it was running out of options, the company has announced that it filed for Chapter 11 bankruptcy protection, and there are plans for iRobot to be acquired by China-based Picea Robotic, which is currently its contract manufacturer.
The company says in its press release that it will continue to operate “with no anticipated disruption to its app functionality, customer programs, global partners, supply chain relationships, or ongoing product support.” Essentially, it sounds like there will be no disruptions to your Roomba, and it should clean your floors just like before.
There was supposedly a deal in place that would see Amazon acquire them and reverse the company’s debts, but it fell through after the European Union flagged the deal over anti-competition concerns. Following the deal’s fallout, iRobot slashed its workforce by just over 30 per cent to reduce spending.
While the company has tried to reinvent its product line and cut prices to compete with rivals, Reuters reported that U.S. tariffs have hit it hard, with the 46 percent tariff on Vietnam hurting it the most, as that is where the company manufactures its robot vacuums.
iRobot expects to complete its pre-packaged Chapter 11 process by next February.
Source: The Verge
