iRobot Files for Chapter 11 Bankruptcy, Agrees to Acquisition by Picea

iRobot has entered into a restructuring agreement that will see the company acquired by its primary contract manufacturer, Picea, through a court-supervised Chapter 11 process. The move is intended to stabilize iRobot's finances following a turbulent period that included a failed acquisition by Amazon.


Under the agreement, Picea will acquire 100% of iRobot's equity. The transaction is structured to reduce the company's debt while allowing it to continue operating normally, maintain its global presence, and move forward with its product roadmap. iRobot expects to complete the pre-packaged Chapter 11 process by February 2026.

The company says operations will continue without interruption during the restructuring. iRobot stated that its apps, customer programs, supply chain relationships, and product support will remain fully functional. It has also filed routine motions with the court to ensure employees and vendors continue to be paid throughout the process.

The move comes after a rough stretch for the Roomba maker. In 2022, Amazon agreed to buy iRobot for $1.7 billion, but the deal was later abandoned amid mounting regulatory concerns. Even so, iRobot has continued rolling out new products, most recently the Roomba Combo 10 Max with Matter and Apple Home support.

"The transaction will strengthen our financial position and help ensure continuity for our consumers, customers, and partners," said iRobot CEO Gary Cohen.

Once the transaction is finalized, iRobot will become a privately held company wholly owned by Picea, and its shares will be delisted from the Nasdaq. The company has also disclosed that existing shareholders are not expected to receive equity in the reorganized business.