As it enters a pre-packaged Chapter 11 bankruptcy process, iRobot Corp. announced its acquisition by the company’s secured lender and its primary contract manufacturer, Shenzhen Picea Robotics Co. and Santrum Hong Kong Co.
As part of a Restructuring Support Agreement (RSA), iRobot will continue to operate as a privately held organization with an improved financial foundation that will position it for long-term growth and innovation, the company maintained.
iRobot expects to complete the pre-packaged Chapter 11 process by February 2026, the company stated. Under the terms of the RSA, Picea will receive 100% of the equity interests in iRobot, which will de-lever iRobot’s balance sheet and enable the company to continue operating in the ordinary course of business, continue with product development and maintain the global footprint it has established. iRobot pointed out it doesn’t anticipate disruption to app functionality, customer programs, global partners, supply chain relationships or ongoing product support.
With Picea assuming ownership, iRobot will no longer list on the Nasdaq Stock Market or any other national bourse. iRobot does not expect that holders of its common stock will receive any equity in the reorganized company or recovery on their investment.
“Today’s announcement marks a pivotal milestone in securing iRobot’s long-term future,” said Gary Cohen, iRobot CEO. “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 Rand 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.”
