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iRobot Files for Chapter 11 as Supplier Picea Moves to Take Company Private

The pre-packaged plan would transfer full ownership to the Chinese manufacturer in exchange for canceling roughly $264 million of debt.

Overview

  • The company filed in the District of Delaware on December 14 under a pre-packaged restructuring targeting completion by February 2026.
  • Shenzhen PICEA Robotics and Santrum Hong Kong are set to acquire 100% of the equity and take iRobot private, delisting the stock.
  • Picea will extinguish about $264 million in obligations, including roughly $190 million from a 2023 loan and about $74 million owed under manufacturing agreements.
  • Existing common shares will be canceled with no recovery, while iRobot says app services, customer support, and payments to employees, vendors, and other suppliers will continue during the process.
  • Shares fell more than 70% in premarket trading Monday as the company cited years of pressure from lower-priced rivals, new U.S. tariffs including a 46% levy on Vietnam-made imports, and the collapse of Amazon’s 2024 takeover.