iRobot, the Bedford, Massachusetts maker of Roomba robot vacuums, has started a pre-packaged Chapter 11 process in the U.S. Bankruptcy Court for the District of Delaware as it pursues a court-supervised sale to its primary contract manufacturer, Shenzhen PICEA Robotics Co., Ltd., and its affiliate Santrum Hong Kong (together, Picea).
The company said the restructuring support agreement would give Picea 100% of iRobot’s equity after court approval, and iRobot expects the process to finish by February 2026.
iRobot said existing common stock would be canceled with no recovery if the plan is confirmed, and the company would become privately held.
iRobot also said it expects no disruption to app functionality, customer programs, global partners, supply chain relationships, or product support during the case, and that it has filed motions to keep paying employees, vendors, and other creditors.
In a SEC filing, iRobot disclosed that Santrum assumed $190.7 million outstanding under iRobot’s 2023 credit agreement and that iRobot owed Picea $161.5 million for manufacturing, including $90.9 million past due.