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iRobot Files for Chapter 11 as Supplier Picea to Take Control

The court plan would delist the Roomba maker, leaving current shareholders with no recovery upon approval.

Overview

  • iRobot and several subsidiaries began a voluntary U.S. Chapter 11 process tied to a restructuring with Shenzhen Picea Robotics and affiliate Santrum Hong Kong.
  • The agreement transfers 100% of iRobot’s equity to Picea and would make the company private with its shares removed from Nasdaq.
  • The company says it will keep operating during the proceedings and targets completion of the reorganization by February 2026.
  • Leadership frames the deal as a way to bolster finances, cut debt, and fund innovation, with CEO Gary Cohen calling the step a crucial milestone.
  • The move follows heavy losses, deep workforce cuts, and the collapse of Amazon’s 2024 purchase plan after EU competition concerns, alongside pressure from cheaper rivals and supply issues.