Overview
- iRobot filed a pre-packaged Chapter 11 case in Delaware and says the court process could conclude around February 2026.
- The company expects no disruption to Roomba devices, app functionality, customer programs, supply chains, or product support during restructuring.
- Existing common shareholders are set to receive no recovery, and shares plunged about 70% in Monday trading following the announcement.
- Picea is slated to assume 100% of equity and cancel approximately $264 million in obligations, including a $190 million 2023 loan and $74 million in manufacturing-related claims.
- Management cites steep revenue declines, stronger low-cost rivals, a 46% U.S. tariff on Vietnam-made units, and the collapse of Amazon’s 2024 takeover as drivers of the downturn.