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Roomba Maker iRobot Files for Chapter 11, Agrees to Sale to Chinese Firms

Operations will continue during bankruptcy pending Delaware court review of a sale to Shenzhen Picea and Santrum.

Overview

  • iRobot entered U.S. Chapter 11 and announced a restructuring agreement to be acquired by Shenzhen Picea Robotics Co. and Santrum Hong Kong Co.
  • Following completion of the transaction, the company would become privately held under Picea’s control and its shares would be delisted from Nasdaq.
  • iRobot expects that existing shareholders will receive no stake in the reorganized company if the Delaware court approves the plan.
  • CEO Gary Cohen said the deal is intended to strengthen the balance sheet and maintain uninterrupted service for customers, partners and retailers.
  • The collapse follows intensifying competition from Chinese robot makers, tougher macro conditions and tariffs, and came after Amazon scrapped its 2024 takeover, which preceded deep job cuts.