Company’s secured lender and key supplier, Picea, to acquire iRobot through court-supervised chapter 11 process
Positions iRobot to continue delivering trusted robotics and smart home devices to consumers worldwide
iRobot Corporation, a leader in consumer robots, announced that it entered into a Restructuring Support Agreement (the “RSA”) with its secured lender and its primary contract manufacturer, Shenzhen PICEA Robotics Co., Ltd. and Santrum Hong Kong Co., Limited, (collectively “Picea”) for Picea to acquire iRobot through a court-supervised process. This agreement represents a critical step toward strengthening iRobot’s financial foundation and positioning the Company for long-term growth and innovation.
To efficiently implement this transaction, iRobot and certain of its affiliates voluntarily commenced a pre-packaged chapter 11 process in the District of Delaware (the “Court”). The Company expects to complete the pre-packaged chapter 11 process by February 2026.
Under the terms of the RSA, Picea will receive 100% of the equity interests in the Company, which will delever the Company’s balance sheet and enable iRobot to continue operating in the ordinary course, pursue its product development roadmap, and maintain its global footprint. The transaction contemplated under the RSA provides a path forward to enhance financial stability, reduce debt, and support continued innovation across iRobot’s leading portfolio of robotics and smart home devices.
“Today’s announcement marks a pivotal milestone in securing iRobot’s long-term future,” said Gary Cohen, Chief Executive Officer, iRobot. “The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners. Together, we will work to continue advancing the industry-leading Roomba robots and smart home technologies that have defined the iRobot brand for more than three decades. By combining iRobot’s innovation, consumer-driven design, and R&D with Picea’s history of innovation, manufacturing, and technical expertise, we believe iRobot will be well equipped to shape the next era of smart home robotics.”
Continuity of Operations During Pre-Packaged Chapter 11 Process
During the chapter 11 process, iRobot will continue operating in the ordinary course with no anticipated disruption to its app functionality, customer programs, global partners, supply chain relationships, or ongoing product support. To maintain business continuity, iRobot has filed a series of customary motions with the Court that will allow the Company to operate in the ordinary course, including to meet its commitments to employees and make timely payments to vendors and other creditors in full for amounts owed before, during, and after the court-supervised process.
Emerging Stronger Under New Ownership
Following Court approval of the transaction, iRobot expects to be better positioned to execute on its long-term innovation strategy under Picea’s ownership. Upon completion of the transaction, iRobot will be a private company wholly owned by Picea, and its shares of common stock will no longer be listed on The Nasdaq Stock Market LLC or any other national stock exchange. The transaction is designed to deliver a more stable balance sheet and renewed ability to invest in its next generation of robotics, smart home innovations, and customer experience enhancements.
The Company expects that holders of the Company’s common stock will not receive any equity of the reorganized Company, and that all issued and outstanding equity interests in the Company will be cancelled and holders of common stock will experience a total loss and not receive recovery on their investment, if the chapter 11 plan is approved by the Court.
Catch more CIO Insights: The CIO’s Role In Data Democracy: Empowering Teams Without Losing Control
[To share your insights with us, please write to psen@itechseries.com ]
