In a significant move to stabilize its financial footing and position itself for long-term growth, iRobot Corporation (NASDAQ: IRBT) announced today that it has entered into a Restructuring Support Agreement (RSA) with its secured lender and primary contract manufacturer, Shenzhen PICEA Robotics Co., Ltd., and Santrum Hong Kong Co., Limited (collectively referred to as “Picea”). The agreement sets the stage for Picea to acquire iRobot through a court-supervised Chapter 11 restructuring process. This transaction is seen as a critical step to enhance the company’s financial position and maintain its ability to deliver innovative robotics and smart home solutions to consumers worldwide.
The announcement comes amid ongoing financial challenges for the Bedford-based robotics giant, best known for its Roomba robotic vacuum cleaner and other consumer robotics products. The strategic move to enter Chapter 11 will allow iRobot to reorganize its debt, restructure its financial obligations, and continue to operate its business without significant disruption.
The Acquisition Agreement and Chapter 11 Filing
Under the terms of the RSA, Picea will acquire 100% of the equity interests in iRobot, effectively taking control of the company. The transaction is expected to result in a dramatic reduction of iRobot’s outstanding debt, which has been a significant strain on its financial performance in recent years. By allowing Picea to take the helm, iRobot aims to streamline its operations and reinvest in product development, innovation, and its global market presence.
As part of the transaction, iRobot has voluntarily initiated a pre-packaged Chapter 11 bankruptcy process in the District of Delaware, where it will work with the court to implement its reorganization plan. This pre-packaged process is expected to be completed by February 2026, giving the company an efficient pathway to a more stable financial future. During this time, iRobot will continue to operate in the ordinary course of business, ensuring that there is no immediate disruption to its customers, product support, or global supply chain relationships.
iRobot’s Long-Term Growth Plan Under New Ownership
The RSA signals a new phase for iRobot, one where the company’s debt is reduced, allowing for a renewed focus on growth and innovation. Under the new ownership structure, iRobot plans to continue developing its portfolio of smart home devices and robotics products. The company’s commitment to advancing its Roomba line of robotic vacuums and expanding into new categories of home automation technology will remain central to its strategy.
Gary Cohen, iRobot’s CEO, expressed confidence that the acquisition by Picea will position the company to achieve its long-term goals: “Today’s announcement marks a pivotal milestone in securing iRobot’s long-term future. 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.”
Picea, a global leader in robotic vacuum manufacturing with research and development facilities in China and Vietnam, brings a wealth of expertise in product innovation and global distribution. With over 7,000 employees worldwide, Picea has a long-standing track record of success in the robotics industry, and iRobot hopes to leverage Picea’s resources to accelerate its development of next-generation smart home devices.
By combining iRobot’s expertise in consumer-driven design and research and development with Picea’s technical manufacturing capabilities, the companies aim to drive the next era of smart home robotics. This partnership is expected to foster continued innovation while delivering the high-quality products that iRobot customers have come to expect.
Operations and Continuity During Chapter 11 Process
One of the most significant aspects of the Chapter 11 filing is that iRobot will continue its operations as usual during the reorganization process. The company has emphasized that there will be no disruption to its core business activities, including product development, customer service, and its global supply chain. iRobot has filed a series of customary motions with the Court to ensure business continuity, including motions to ensure timely payments to employees, vendors, and creditors, and to maintain ongoing product support and app functionality.
In addition to maintaining customer support, iRobot will continue to fulfill its product orders and will honor all warranties and commitments to customers. The company reassures consumers that they can expect no interruptions in their experience with Roomba robots, smart home devices, or other iRobot products.
This approach will be crucial in maintaining customer trust and confidence throughout the restructuring process. With no anticipated disruption to its operations, iRobot aims to minimize any potential negative impact on its brand and market position during this period of transition.
What Does the Chapter 11 Process Mean for iRobot’s Shareholders?
The restructuring plan under the RSA has significant implications for iRobot’s shareholders. Upon completion of the Chapter 11 process, iRobot will become a privately held company under Picea’s ownership. As a result, iRobot’s shares will be delisted from the NASDAQ Stock Market and will no longer be publicly traded.
For current iRobot shareholders, the transaction means that their equity interests in the company will be canceled, and they will not receive any equity in the reorganized company. The Chapter 11 process will not provide any recovery to holders of iRobot’s common stock, which will likely result in a total loss for these investors. Shareholders and other stakeholders will be notified of the restructuring process and provided with any necessary court filings or documents related to the process.
The decision to cancel the company’s stock comes as part of the reorganization strategy designed to streamline iRobot’s operations and improve its balance sheet. The restructuring plan aims to eliminate iRobot’s substantial debt, which has been an ongoing challenge for the company in recent years.
iRobot’s Future: Innovation and Expansion
Despite the financial restructuring, iRobot remains committed to maintaining its position as a leader in consumer robotics. The company’s portfolio of robots and smart home devices continues to be one of the most recognized and trusted in the industry, and iRobot intends to build on this foundation to drive future growth.
The Roomba robotic vacuum, which has been the company’s flagship product since its launch in 2002, continues to receive accolades for its performance and reliability. iRobot plans to continue innovating within the vacuuming category, as well as expand into new areas of smart home automation. As more consumers adopt connected home devices, iRobot is well-positioned to leverage its technological expertise to develop new products that integrate seamlessly with smart home ecosystems.
Additionally, iRobot is focused on integrating artificial intelligence (AI) and machine learning into its robots to further enhance their functionality. By incorporating AI, iRobot can develop robots that better understand and navigate home environments, making them more efficient and effective in assisting consumers with everyday tasks. This innovation will be a key part of iRobot’s ongoing product roadmap.
Furthermore, with Picea’s manufacturing capabilities, iRobot expects to ramp up its production and distribution to meet growing consumer demand for smart home technologies. The company is also likely to expand its presence in global markets, including regions where robotics and automation technology are seeing rapid adoption.
About iRobot
iRobot is a leading global consumer robotics company, renowned for its innovation in the development of home cleaning solutions. Since the introduction of its first Roomba robot vacuum in 2002, iRobot has expanded its product portfolio to include a wide range of robotics solutions for home maintenance, health, and convenience. The company is committed to making everyday life easier through intelligent home innovations.
iRobot’s products use advanced technologies, including sensors, mapping, and AI, to perform tasks such as vacuuming, mopping, and even lawn care. The company’s commitment to research and development has made it a pioneer in the field of consumer robotics.
About Picea
Picea is a global leader in the design, manufacturing, and distribution of robotic vacuum cleaners. The company operates research and development and manufacturing facilities in China and Vietnam, with over 7,000 employees worldwide. Picea has developed strong relationships with major global enterprises and holds more than 1,300 intellectual property rights. The company has sold more than 20 million robotic vacuum cleaners globally and continues to innovate in the field of smart home robotics.
Looking Ahead: Stability and Growth for iRobot
iRobot’s strategic partnership with Picea marks a pivotal moment in the company’s history. With financial restructuring underway, the company is poised to emerge from the Chapter 11 process stronger, more innovative, and better equipped to continue delivering cutting-edge products to consumers. While the road ahead may be challenging, the collaboration with Picea offers iRobot the opportunity to stabilize its financial position and accelerate its growth, positioning it as a leader in the future of robotics and smart home technology.
As the restructuring process unfolds, consumers, employees, and partners can expect continued product support and innovation from iRobot, ensuring that the company’s legacy of excellence in consumer robotics continues for years to come.