iRobot, the company that pioneered the Roomba robot vacuum, has filed for Chapter 11 bankruptcy protection for its business. The notice was filed in Delaware on December 14, with the company entering into a Restructuring Support Agreement (RSA) with Shenzhen PICEA Robotics Co. and Santrum Hong Kong Co., its suppliers and major creditors.
Under the terms of the RSA, Picea will receive a 100% equity interest in the Company, which will deliver the company’s balance sheet and allow iRobot to continue operating as usual, continue its product development roadmap and maintain its global footprint.
The transaction contemplated under the RSA provides a path forward to enhance financial stability, reduce debt and support continued innovation across iRobot’s leading portfolio of robotics and smart home devices.
In August 2022, Amazon announced its intention to acquire iRobot to complement its expertise in home cleaning robotics. Amazon withdrew this intention after the European Union indicated that it would not grant approval for the acquisition to proceed. iRobot then laid off around 350 employees including the CEO who will be leaving the company due to financial constraints to continue operations.