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iRobot Files for Chapter 11 as Supplier Picea Moves to Take Over

The court process would hand control to supplier Picea, likely wiping out existing shareholders.

Overview

  • The Roomba maker filed for Chapter 11 in Delaware and signed a restructuring support agreement for Picea to acquire 100% of the company.
  • iRobot said product support, the mobile app and customer programs will continue during the proceedings.
  • The transaction requires bankruptcy-court approval, with the companies targeting completion around February 2026, after which trading on Nasdaq would cease.
  • Existing common shareholders are expected to receive no equity in the reorganized company if the plan is approved.
  • SEC filings show iRobot owed Picea more than $161 million as of late November, reflecting strains from low-cost competition and tariff burdens.