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iRobot Files for Chapter 11 as Chinese Buyers Move to Take Company Private

Court approval is now the final hurdle before a delisting that leaves public investors with nothing.

Overview

  • The restructuring agreement would transfer control to Shenzhen Picea Robotics and Santrum Hong Kong, leaving iRobot a wholly owned private subsidiary of Picea after closing.
  • The plan requires approval from the U.S. Bankruptcy Court in Delaware, and the company says products and customer support will continue during the case.
  • iRobot expects its Nasdaq-listed shares to be canceled with no recovery for existing shareholders if the court confirms the plan.
  • CEO Gary Cohen says the transaction is intended to stabilize finances and ensure continuity for consumers, retailers, and partners.
  • The collapse follows Amazon’s scrapped 2024 takeover and deep cost cuts, with mounting pressure from lower-cost Chinese competitors cited as a central factor.