iRobot, the pioneering company behind the Roomba smart vacuum cleaner, has filed for bankruptcy protection in the United States as it struggles to navigate a challenging global market.

The filing, made under a pre-packaged Chapter 11 process, will see Shenzhen-based Picea Robotics—iRobot’s primary manufacturing partner—take over ownership of the company. This strategic move comes after iRobot faced mounting competition from Chinese brands and was hit hard by rising tariffs.

According to court documents filed Sunday, iRobot was forced to slash prices and ramp up investment in innovation to stay competitive. However, U.S. tariffs of 46% on imports from Vietnam—where most of its devices for the American market are produced—added $23 million to its costs this year alone.

Once valued at $3.56 billion during the pandemic-driven boom in home automation, iRobot’s market value has plummeted to around $140 million. The company’s shares dropped more than 13% on the Nasdaq last Friday.

Despite the financial turbulence, iRobot has assured customers that its mobile app, product support, and supply chains will continue to operate without disruption.

Founded in 1990 by three MIT Artificial Intelligence Lab alumni, iRobot initially focused on defense and space robotics before launching the Roomba in 2002. The Roomba quickly became a household name, capturing 42% of the U.S. and 65% of the Japanese robotic vacuum market.

A proposed $1.7 billion acquisition by Amazon was blocked last year by the European Union’s competition authority, further complicating iRobot’s path forward.