Overview
- iRobot entered voluntary Chapter 11 in Delaware and reached a restructuring agreement to hand 100% ownership to Shenzhen Picea Robotics and Santrum Hong Kong, pending court approval.
- The Roomba maker says devices, the app and customer support will operate normally during the process, which it expects to complete by February 2026.
- Picea, iRobot’s principal contract manufacturer and lender with facilities in China and Vietnam, will take the company private through the court-supervised transaction.
- iRobot expects public shareholders to receive no equity in the reorganized company, and its Nasdaq listing will be terminated; premarket trading showed the stock down nearly 70% to $1.31.
- The bankruptcy follows years of weakening demand, tougher low-cost competition and tariff and supply-chain pressures, after Amazon’s planned 2022 acquisition collapsed in 2024 under EU regulatory objections.