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Bankrupt Roomba maker vacuumed up by its Chinese supplier after coming under pressure from cheaper rivals


Bankrupt Roomba maker vacuumed up by its Chinese supplier after coming under pressure from cheaper rivals

The company behind the Roomba robotic vacuum cleaner has filed for bankruptcy in the US and will be bought by its Chinese supplier.

US-listed iRobot has entered a restructuring under which Shenzhen-based Picea Robotics - which already makes its devices under contract - will buy all of its shares.

It follows the collapse in January last year of Amazon's planned takeover of iRobot after opposition from EU competition regulators.

Amazon had agreed a £1.3billion acquisition in August 2022, but the European Commission said the deal could harm competition for rivals on Amazon's marketplace, particularly in France, Germany, Italy and Spain.

The investigation raised concerns that Amazon could reduce the visibility of rival products on its marketplace if the deal went through.

Massachusetts-based iRobot has been hit by competition from cheaper Chinese rivals and surging US tariffs.

Sucked dry: The company behind robotic vacuum cleaner Roomba has filed for bankruptcy in the US

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