iRobot, the maker of the Roomba robot vacuum has filed for Chapter 11 bankruptcy, and has been acquired by Chinese robot manufacturer Picea Robotics.
According to a statement on its website, iRobot describes its arrangement as a “Restructuring Support Agreement (the “RSA”) with its secured lender and its primary contract manufacturer, Shenzhen PICEA Robotics Co., Ltd. and Santrum Hong Kong Co., Limited, (collectively “Picea”) for Picea to acquire iRobot through a court-supervised process.”
The statement says that this agreement represents a critical step toward strengthening iRobot’s financial foundation and positioning the Company for long-term growth and innovation.
Under the terms of the RSA, Picea will receive 100% of the equity interests in the Company, which will deliver its balance sheet and enable iRobot to continue operating in the ordinary course, pursue 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.
Speaking on the day of the announcement, Gary Cohen, Chief Executive Officer, iRobot, commented: “Today’s announcement marks a pivotal milestone in securing iRobot’s long-term future. 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. 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.”
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