iRobot, the company behind the wildly popular Roomba vacuum cleaner, has filed for bankruptcy after 35 years.
After warning last month that it was running out of options, the company announced that it has filed for Chapter 11 bankruptcy protection.and there are plans to acquire iRobot by Chinese company Picea Robotic, which is currently its contract manufacturer.
In its press release, the company says it will continue to operate “without any anticipated disruption to application functionality, customer programs, global partners, supply chain relationships, or ongoing product support.” Basically, it looks like there won't be any glitches with your Roomba and it should clean your floors just like before.
Supposedly there was a deal has been struck where Amazon will acquire them and cancel the company's debts, but it failed after the European Union flagged the deal over anti-competition concerns. After the deal failediRobot has reduced its staff by just over 30 percent to cut costs.
Although the company has tried to reinvent its product line and reduce prices for compete with rivals, Reuters said the US tariffs had hit it hard, with a 46 percent tariff in Vietnam hurting it the most because that's where the company makes its robot vacuum cleaners..
iRobot expects to have a ready Chapter 11 process by February next year.
Source: Edge
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