The company that once turned household cleaning into a futuristic routine has hit financial turbulence. iRobot files for bankruptcy, seeking Chapter 11 protection in Delaware as it confronts more than $100 million in debt and prepares to hand the reins of its business to secured lenders.
Control Shifts to Creditors Under Prearranged Plan
In court papers submitted Sunday, the Massachusetts-based robotics company said it entered bankruptcy with a pre-negotiated restructuring plan that would transfer ownership to Shenzhen Picea Robots Co. Ltd. and Satrum Hong Kong Co. The two entities serve as iRobot’s senior lender and primary manufacturer, respectively.
The arrangement, if approved, would wipe out all existing equity, cancel outstanding shares, and take the company private—ending its tenure as a publicly traded firm on the Nasdaq.
From Market Darling to Private Rebuild
According to a press release issued Sunday, the restructuring will eliminate all current stock while allowing the business to continue operating under new ownership. The move marks a sharp turn for a company once synonymous with consumer robotics innovation.
CEO Gary Cohen struck an optimistic note, likening the deal to a reset rather than a retreat.
“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,” Cohen said.
