Roomba owner iRobot to be acquired by China's Picea, via chapter 11 bankruptcy

Roomba parent iRobot has entered a restructuring support agreement (RSA) with its secured lender and its primary contract manufacturer, and and voluntarily commenced a pre-packaged chapter 11 ''bankrupcty protection' process.

The agreement is with Picea, which comprises Shenzhen PICEA Robotics Co Ltd and Santrum Hong Kong Co Limited, and it sees the Chinese entity acquire 100% of iRobot equity.

The company said in a statement that Picea will receive 100% of the equity interests in iRobot, which the filing said will delever the balance sheet,

It effectively removes the company's debt and allows it to continue operating, pursue its product development roadmap, and maintain a global footprint.

iRobot said it expects to complete the pre-packaged chapter 11 process by February.

“Today’s announcement marks a pivotal milestone in securing iRobot’s long-term future,” said Gary Cohen, iRobot CEO.

“The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners.

"Together, we will work to continue advancing the industry-leading Roomba robots and smart home technologies that have defined the iRobot brand for more than three decades.”

The company said it will continue operating in the ordinary course during the chapter 11 process and has filed customary motions with the Court to maintain business continuity, including meeting commitments to employees and making timely payments to vendors and other creditors in full for amounts owed before, during, and after the court-supervised process.

iRobot said that, upon Court approval, it expects to become a private company wholly owned by Picea and that its common stock will no longer be listed on Nasdaq or any other national exchange.

The Recap

• iRobot agreed sale to Picea under a pre-packaged chapter 11.
• Picea will receive 100% of iRobot’s equity interests.
• Company expects to complete chapter 11 process by February.