iRobot’s Path to Privatization: Delisting and Chapter 11 Restructuring

iRobot US4627261005

The maker of Roomba robotic vacuums, iRobot, is undergoing a fundamental transformation. The company has initiated a delisting from the Nasdaq exchange and filed for Chapter 11 bankruptcy protection, a move that will culminate in its acquisition and leave existing shareholders with nothing. This marks the conclusion of a prolonged period of financial distress and unsuccessful sale negotiations.

A deteriorating financial position ultimately forced iRobot onto the path of court-supervised restructuring. The company's liquidity came under significant pressure, requiring repeated waivers and deadline extensions from its lenders throughout 2025.

Key financial metrics prior to the delisting painted a clear picture of the challenges:

• Revenue Decline: For the second quarter of 2025, U.S. sales plummeted by 33%, with revenue in the EMEA region falling 17%.
• Dwindling Cash: As of June 28, 2025, cash and cash equivalents had dropped to $40.6 million, against a substantial outstanding term loan.
• Operational Funding: To maintain operations, iRobot was compelled to utilize restricted cash from a prior settlement payment made by Amazon.

A pivotal moment occurred in October 2025, when the company disclosed that the sole remaining bidder in ongoing sale discussions was only willing to offer a price substantially below the prevailing market value. This highlighted the deep skepticism among potential acquirers regarding iRobot's economic outlook. The combination of falling revenue, shrinking liquidity, and the inability to secure a buyer at an acceptable price left Chapter 11 as the only viable option. iRobot had previously warned that without additional financing, it risked ceasing operations, which would likely result in a total loss for equity holders.

Exit from Public Markets

The company's departure from the public markets began with a trading suspension of its shares on December 22, 2025. This was followed by an official notification of delisting from the Nasdaq on January 13, 2026.

Consequently, the stock has been removed from regulated public trading. This represents a significant shift for the corporation and its investors, eliminating access to public capital markets and shifting the entire focus to restructuring and creditor obligations.

Pre-Packaged Acquisition Plan

The future of iRobot is now dictated by a court-monitored rehabilitation process. In December 2025, the company entered into a Restructuring Support Agreement with its secured lender and primary contract manufacturer, Picea.

The core elements of this agreement outline a clear path forward:

• Picea is set to acquire iRobot through a pre-packaged Chapter 11 procedure.
• Completion of the bankruptcy process is anticipated by February 2026.
• Following implementation, iRobot will become a privately held company wholly owned by Picea.
• All existing common stock will be canceled in full as part of the restructuring.

These drastic measures were triggered by a strategic review launched earlier, which reached an impasse by the end of 2025 after failing to yield a viable acquisition offer under acceptable terms.