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iRobot Files for Chapter 11, Sets Deal to Go Private Under Picea Ownership

Falling sales, cheaper rivals, rising tariffs pushed the Roomba maker toward a lender-led takeover.

Overview

  • Under a restructuring support agreement, Shenzhen PICEA Robotics will acquire 100% of iRobot’s equity and the company will be taken private, with existing common shareholders receiving no recovery.
  • Picea plans to cancel roughly $190 million remaining on a 2023 loan and about $74 million owed under manufacturing agreements, while filings indicate employees, vendors and other creditors are expected to be paid in full.
  • iRobot says operations will continue during the court process with no anticipated disruption to device functionality, the app, customer programs, supply chains or product support.
  • The Chapter 11 case was filed in Delaware and the prepackaged plan targets completion by February 2026, subject to bankruptcy court approval.
  • Court documents cite intensified low‑cost competition and a 46% U.S. tariff on Vietnamese imports that added about $23 million to 2025 costs, following the collapse of Amazon’s proposed acquisition in January 2024.