iRobot bankruptcy results in total capital loss for shareholders, takeover aims to save Roomba functionality

For several months now, iRobot is has been running out of money and heading towards bankruptcy. That time has now come, and iRobot is now being acquired by Shenzhen Picea Robotics Co., Ltd. as part of a court-supervised Chapter 11 bankruptcy proceeding.

Picea is an ODM manufacturer that develops and produces vacuum and mopping robots for dozens of brands, including the Roomba Max 705 Combo and the Dyson Spot+Scrub. The acquisition is expected to be completed by February 2026. iRobot stresses that users should not expect any restrictions during this acquisition in terms of access to the iRobot app or the functionality of Roomba and Braava Jet robots. Once the process is complete, iRobot will be wholly owned by Picea, and the company's shares will no longer be traded on the stock exchange.

Shareholders are expected to lose all their capital as part of bankruptcy proceedings, assuming the proceedings are accepted by the court. iRobot has not yet confirmed what impact these plans will have on the company's staff or management team. For Picea, the acquisition would certainly be an opportunity to sell its ODM products directly to end consumers under a globally recognized brand name, thereby achieving a higher profit margin. It is doubtful that iRobot will develop any new products of its own that are not directly derived from Picea's ODM portfolio.