"The U.S. company that put robot vacuums into American homes has hit the skids. The maker of Roomba, called iRobot, has filed for bankruptcy about two years after its failed merger with Amazon. The company has struggled to keep up with foreign rivals, its hefty debt and new costs of tariffs. The firm is now being taken over by its main manufacturer based in China, assuring owners that its devices will keep running as usual."
"Amazon's offer to buy iRobot for $1.4 billion fell apart last year under scrutiny from European and U.S. competition regulators. iRobot was left with a $200 million loan it had taken to sustain itself during the merger review. All year, the firm has been losing money. In the latest quarter, iRobot reported its revenue declined by 33% in the U.S. In March, it had begun warning of a possible bankruptcy, citing worries about consumer demand, competitors and tariffs."
iRobot filed for bankruptcy after failing to complete a merger with Amazon and facing rising competition, heavy debt and new tariff costs. Most Roombas are manufactured in Vietnam and the company owes U.S. Customs $3.4 million in unpaid tariffs and nearly $100 million to Shenzhen Picea Robotics, its main supplier. Founded in 1990 by MIT researchers, iRobot developed military and commercial robots before popularizing the Roomba. Revenue has fallen sharply, with a 33% decline in U.S. sales in the latest quarter. As part of the bankruptcy plan, iRobot will go private and be acquired by Shenzhen Picea Robotics, which also makes rival household brands.
Read at www.npr.org
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