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(Sharecast News) - iRobot, the company behind the Roomba smart vacuum cleaner, has filed for bankruptcy protection after struggling with Donald Trump's so-called 'reciprocal' tariffs and competition from Chinese rivals.
The US firm said it would enter a prepackaged Chapter 11 process, under which Shenzhenbased Picea Robotics, the main manufacturer of its devices, will take ownership. Documents filed on Sunday showed iRobot had been forced to cut prices and invest heavily in new technology amid a tougher commercial landscape.
US import duties of 46% on goods from Vietnam, where most of iRobot's USbound products are made, added $23m to costs this year. iRobot, once valued at $3.56bn in 2021 after pandemicdriven demand, was now estimated to be worth around $140m.
iRobot said the bankruptcy filing was not expected to disrupt its app, supply chains or product support. The device now holds about 42% of the US market and 65% of the Japanese market for robotic vacuum cleaners.
Picea, which will take control of iRobot, employs more than 7,000 staff globally and has sold over 20m robotic vacuum cleaners. It operates research and production facilities in China and Vietnam, and was expected to integrate iRobot's operations into its wider business.
Reporting by Iain Gilbert at Sharecast.com
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