iRobot, maker of Roomba and Braava cleaning robots, files for Chapter 11 bankruptcy due to losses, costs, and lower revenue from Trump’s tariff policies. Amazon’s previous $1.7 billion buyout fell through, now iRobot plans to be acquired by Picea Robotics, its primary manufacturer, by February. Investors face total loss.

Despite filing for Chapter 11 bankruptcy, iRobot plans to continue operations, app functionality, and global partnerships during reorganization. Stock plummeted over 65% after announcement. Company’s revenue dropped in Q3, facing $23 million in increased costs. iRobot owes $352 million to Picea, with $91 million past due.

iRobot’s bankruptcy announcement follows failed Amazon deal in 2024 due to regulatory issues. Trump’s tariff policy raised costs, leading to a 33% drop in U.S. sales. Company reported $145.8 million in Q3 revenue, down from $193.4 million year-over-year. Stock price before announcement was $4.32.

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Read more at Yahoo Finance: iRobot Files for Chapter 11 Amid Rising Competition and Tariff Pressures