iRobot Files for Bankruptcy: Shareholders Wiped Out, Picea Takes Over

iRobot filed for Chapter 11 bankruptcy and will be acquired by Shenzhen Picea Robotics, canceling all common shares and $264 million in debt. Operations will continue, but shareholders will receive no recovery.

iRobot Corporation, known for its Roomba robotic vacuums, filed for pre-packaged Chapter 11 bankruptcy protection in Delaware and agreed to a court-supervised restructuring that will see Shenzhen Picea Robotics acquire 100% of the company’s equity. The restructuring plan, supported by iRobot’s main lender and contract manufacturer, will cancel approximately $264 million in debt, including $190 million from a 2023 loan and $74 million in manufacturing obligations. All existing common shares will be canceled, leaving shareholders with no recovery. iRobot’s valuation plummeted from $3.56 billion in 2021 to about $140 million, driven by weak sales, increased competition, tariffs, and the failed Amazon acquisition. Despite the bankruptcy, iRobot’s operations, customer programs, and supply chain are expected to continue without interruption, and creditors and suppliers are expected to be paid in full. The Chapter 11 process is expected to conclude by February 2026, after which iRobot will become a privately held company under Picea’s ownership.