iRobot Bankruptcy: Picea to Take Company Private
iRobot bankruptcy leaves lender Picea set to buy all equity and take the company private, prompting Nasdaq delisting and shifting trader flows.
KEY TAKEAWAYS
- iRobot had filed a pre-packaged Chapter 11 and signed an RSA giving lender Picea 100.0% equity.
- The agreement will cancel common stock, delist Nasdaq shares and convert iRobot to private ownership.
- Q3 revenue fell 25.0% y/y to $146M while cash stood at $25M; completion expected Feb 2026.
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iRobot (IRBT) filed for pre-packaged Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Dec. 14, 2025, entering a restructuring support agreement with lender Picea that will acquire all equity and take the company private while operations continue.
Chapter 11 Filing and Sale Terms
The company said in a press release issued on Dec. 14, 2025, at 6:57 p.m. ET that it signed a Restructuring Support Agreement with secured lender and contract manufacturer Shenzhen PICEA Robotics Co., Ltd. and Santrum Hong Kong Co., Limited (collectively, Picea). Under the agreement, Picea will acquire 100% of iRobot’s equity, delever the balance sheet, and take the company private. iRobot’s common stock will be canceled and delisted from Nasdaq. The transaction is structured as a pre-packaged Chapter 11 bankruptcy that requires approval from the U.S. Bankruptcy Court for the District of Delaware.
Gary Cohen, iRobot’s chief executive, said the transaction will strengthen the company’s financial position and help maintain continuity for consumers, customers, and partners.
Operations, Acquirer Profile, and Financial Position
iRobot said customer-facing services—including app functionality, product support, and customer programs—will continue without disruption during the restructuring. Payments to vendors and employees, as well as supply-chain operations, will also proceed normally.
The company described Picea as a global robotic vacuum manufacturer with research and development and manufacturing facilities in China and Vietnam. Picea employs more than 7,000 people, holds over 1,300 intellectual property rights, and has sold more than 20 million units.
iRobot reported third-quarter 2025 revenue of $145.8 million, down 25% year over year. Cash on hand stood at $24.8 million as of Sept. 27, 2025, after a $5 million withdrawal. No additional capital sources have been identified.
The pre-packaged Chapter 11 process is expected to complete by February 2026. Upon approval, iRobot will be privately owned by Picea, with ongoing operations, product development, and its global footprint preserved.
