Overview
- iRobot filed for Chapter 11 in Delaware and entered a restructuring support agreement for Picea to acquire 100% of the company, subject to court approval.
- The company asked the court to allow continued operations, including paying employees and suppliers and keeping product support and app services running.
- Existing common shareholders are expected to receive no recovery, and the stock would be delisted if the transaction is confirmed.
- SEC filings show iRobot owed Picea more than $161 million at the end of November, underscoring Picea’s role as the largest creditor.
- The parties expect to close the restructuring by February 2026, as iRobot cites pressure from lower-priced rivals and tariff costs; customers are told devices will continue to work, including basic functions without the app if needed.