iRobot, the maker of Roomba consumer robots, said it has entered into a Restructuring Support Agreement with its secured lender and primary contract manufacturer, Shenzhen PICEA Robotics Co., Ltd., and Santrum Hong Kong Co., Limited, collectively referred to as Picea, paving the way for Picea to acquire iRobot through a court-supervised process.
To carry out the deal, iRobot and certain affiliates voluntarily began a pre-packaged Chapter 11 process in the District of Delaware. The company said it expects to complete the process by February 2026.
Under the agreement, Picea would receive 100% of iRobot’s equity interests. iRobot said the transaction is intended to delever its balance sheet, improve financial stability, reduce debt, and support continued investment in its robotics and smart home product roadmap while maintaining its global footprint.
During the Chapter 11 process, iRobot said it expects to continue operating in the ordinary course without disruptions to app functionality, customer programs, global partners, supply chain relationships, or ongoing product support. The company said it has filed customary motions with the court designed to allow it to keep operating normally, including meeting employee commitments and making timely payments to vendors and other creditors for amounts owed before, during, and after the court-supervised process.
Following court approval and completion of the transaction, iRobot said it expects to operate as a private company wholly owned by Picea, and that its common stock would no longer be listed on Nasdaq or any other national stock exchange. iRobot also said holders of its common stock are expected to receive no equity in the reorganized company, with existing equity interests cancelled and common shareholders experiencing a total loss if the Chapter 11 plan is approved.Supp
Support: Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as lead legal counsel, Young Conaway Stargatt & Taylor, LLP is serving as Delaware counsel, Alvarez & Marsal is serving as investment banker and financial advisor, and C Street Advisory Group is serving as strategic communications advisor. White & Case LLP is serving as legal counsel to Picea.
KEY QUOTES:
“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.”
Gary Cohen, Chief Executive Officer, iRobot
