iRobot, maker of the Roomba vacuum, filed for Chapter 11 bankruptcy protection after agreeing to be taken private by its primary manufacturer, Picea Robotics.

The company faced declining profits due to competition from lower-priced Chinese rivals, U.S. tariffs, and rising costs, generating $682 million in revenue in 2024 but struggling with debt and reduced margins.

Under the bankruptcy plan, Picea will acquire 100% of iRobot’s equity, cancel $190 million in outstanding loans, and cover an additional $74 million owed under their manufacturing agreement, while other creditors will be paid in full.

Despite financial troubles, iRobot remains dominant in the U.S. and Japanese markets and says operations, apps, and customer support will continue uninterrupted, Reuters has reported.

Once valued at $3.56 billion during the pandemic, the company is now worth around $140 million, reflecting the challenges of a highly competitive robotic vacuum market.