iRobot Files for Chapter 11 Restructuring as Picea Secures Acquisition Deal

iRobot Corp. (IRBT) has initiated formal bankruptcy proceedings under Chapter 11 in the U.S. District Court of Delaware, signaling the conclusion of its independent operations as a public company. The robotics manufacturer anticipates completing the court-supervised restructuring by early 2026, representing a major turning point in resolving the company’s mounting financial difficulties and charting a course toward recovery.

Key Restructuring Terms and Timeline

The company has finalized a Restructuring Support Agreement (RSA) with two principal stakeholders: its primary lender and contract manufacturer based in Shenzhen. Under this agreement framework, Picea—the manufacturing partner that has been integral to iRobot’s production operations—will acquire full ownership of the company’s equity through the bankruptcy court process. This transaction consolidates iRobot’s future under new ownership while streamlining its operations.

The restructuring proceeding is expected to span approximately 12 months from filing, with the February 2026 target completion date providing clarity to creditors and remaining stakeholders regarding the timeline for resolution and operational transition.

Market Implications and Share Delisting

Upon finalization of the acquisition by Picea, iRobot will transition from a publicly-traded company to a private enterprise. This transition automatically triggers the delisting of iRobot common stock from The Nasdaq Stock Market LLC. Following this action, shares will cease trading across all national securities exchanges, ending decades of public market participation for the robotics company.

The shift to private ownership under Picea marks a fundamental restructuring of iRobot’s corporate identity and ownership structure, reflecting the challenges the company faced in sustaining its position as an independent public company in the competitive robotics and automation sector.

(Disclaimer: The views expressed herein are those of the author and do not necessarily represent the positions of Nasdaq, Inc.)