Roomba maker iRobot files for bankruptcy as tariffs drive up costs

Core Insights - iRobot, the company behind Roomba vacuum cleaners, has filed for bankruptcy protection, attributing its downfall to increased competition and rising costs from tariffs [1][2][3] Company Overview - iRobot was founded in 1990 by engineers from MIT, initially focusing on defense and space before shifting to consumer robotics with the launch of Roomba in 2002 [2] - The company achieved a market share of approximately 42% in the U.S. and 65% in Japan for its vacuum cleaners [2] Financial Performance - In the previous year, iRobot generated around $682 million in revenue but faced pressure to lower prices and increase development spending due to fierce competition from rivals like Ecovacs Robotics [3] - The company's valuation plummeted from $3.56 billion in 2021 to just $140 million at the time of the bankruptcy filing [4] Tariff Impact - iRobot's manufacturing in Vietnam was significantly affected by a 46% import duty imposed under President Trump's tariff regime, leading to an increase in costs by $23 million in the current year [2] Bankruptcy Details - iRobot owes $352 million to its main supplier, Shenzhen Picea Robotics, with $91 million of that amount being past due [5] - As part of the bankruptcy proceedings, Shenzhen Picea Robotics will acquire 100% of iRobot's equity interest, allowing the company to continue operations [5]