iRobot Announces Strategic Transaction to Drive Long-Term Growth Plan

Core Viewpoint - iRobot Corporation has entered into a Restructuring Support Agreement with its secured lender and primary contract manufacturer, Picea, to facilitate its acquisition through a court-supervised chapter 11 process, aiming to strengthen its financial foundation and ensure long-term growth and innovation [1][3][4] Group 1: Transaction Details - iRobot and certain affiliates have voluntarily commenced a pre-packaged chapter 11 process in the District of Delaware, expecting to complete it by February 2026 [2] - Under the terms of the Restructuring Support Agreement, Picea will acquire 100% of iRobot's equity interests, which will help deleverage the company's balance sheet and allow it to continue operations and product development [3][6] - The transaction is designed to enhance financial stability, reduce debt, and support continued innovation in iRobot's robotics and smart home device portfolio [3][6] Group 2: Operational Continuity - During the chapter 11 process, iRobot will continue its operations without disruption to app functionality, customer programs, or supply chain relationships, ensuring business continuity [5] - The company has filed customary motions with the Court to meet commitments to employees and make timely payments to vendors and creditors [5] Group 3: Future Outlook - Following court approval, iRobot expects to be better positioned for long-term innovation under Picea's ownership, transitioning to a private company wholly owned by Picea [6] - The transaction aims to provide a more stable balance sheet and renewed capacity for investment in next-generation robotics and smart home innovations [6] - Holders of iRobot's common stock are expected to experience a total loss of their investment, as all outstanding equity interests will be canceled if the chapter 11 plan is approved [7]