iRobot, widely regarded as a pioneer of robotic vacuum cleaners, yesterday formally filed for Chapter 11 bankruptcy protection with the US Bankruptcy Court for the District of Delaware. The company expects to complete the restructuring process by February 2026. Chapter 11 of the US Bankruptcy Code is a reorganization procedure designed to help financially distressed companies continue operating while restructuring their debts, rather than proceeding directly to liquidation. The process aims to give companies with ongoing business value an opportunity to stabilize and recover. According to an iRobot filing, the company has entered into a Restructuring Support Agreement with its secured creditors and primary contract manufacturer, Shenzhen PICEA Robotics Co., Ltd., along with Santrum Hong Kong Co., Limited (together referred to as “Picea”). Picea operates research, development, and manufacturing facilities in China and Vietnam and employs more than 7,000 people globally. Under the terms of the Restructuring Support Agreement, Picea will acquire 100% ownership of iRobot. [Jiemian, in Chinese]
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