iRobot, the 35-year-old maker of the Roomba robot vacuum from Bedford, Massachusetts, has filed for pre-packaged Chapter 11 bankruptcy on December 14 in Delaware, and will be acquired by Shenzhen PICEA Robotics Co.
The deal will give Picea 100 percent of iRobot’s equity and cancel all issued and outstanding common stock, leaving existing shareholders with no recovery. Court filings show iRobot’s estimated assets and liabilities range from $100 million to $500 million. The company plans to complete the court-supervised process by February 2026, after which iRobot will operate as a private company fully owned by Picea and delist from Nasdaq.
The filing follows a sharp decline after Amazon dropped its $1.7 billion acquisition of iRobot in January 2024 due to opposition from European Union regulators. iRobot received a $94 million termination fee following the failed acquisition. It then cut 31 percent of its workforce and saw founder Colin Angle resign as CEO.
iRobot’s cash reserves dropped below $25 million by the third quarter of 2025. In early December, Carlyle Group sold about $191 million of iRobot’s outstanding debt to Santrum, a subsidiary of Picea. Additionally, iRobot owed Picea $161.5 million in trade payables, including $90.9 million past due. These moves put more than $350 million in claims under Picea’s control.
“Today’s announcement marks a pivotal milestone in securing iRobot’s long-term future,” said Gary Cohen, iRobot’s CEO, in a statement. “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.”
iRobot will continue operating normally during the bankruptcy proceedings. It expects no interruptions to app functionality, customer programs, or product support. The company has filed motions to continue payments to employees, vendors, and creditors.
Picea, founded in 2016, employs more than 7,000 people worldwide and has produced over 20 million robotic vacuum cleaners. It holds more than 1,300 intellectual property rights globally, positioning it as a significant player in the robotics industry.
