iRobot, maker of the Roomba, has filed a pre-packaged Chapter 11 bankruptcy in Delaware as Shenzhen PICEA Robotics moves to take control of the company and wipe out more than $260 million of debt. Key facts - Date and market reaction: iRobot filed for Chapter 11 on December 15, 2025. Shares plunged more than 82% in premarket trading that day. - Deal mechanics: Under a Restructuring Support Agreement with secured lender/manufacturer Shenzhen PICEA Robotics and Santrum Hong Kong, PICEA will acquire 100% of iRobot’s equity through a court-supervised process. The deal cancels roughly $190 million from a 2023 loan plus about $74 million owed under the manufacturing agreement. - Valuation slide: Market data show iRobot’s value has fallen from $3.56 billion in 2021 to about $140 million today. - Timeline and finances: iRobot began a pre-packaged Chapter 11 in the District of Delaware and expects to complete the restructuring by February 2026. Court filings list estimated assets between $100 million and $500 million and liabilities in the same range. - Operations and employees: iRobot said operations will continue uninterrupted — app services, customer programs, global partnerships, supply-chain ties and product support should remain intact. The company employs 274 people and is headquartered in Bedford, Massachusetts. Background and business pressures Founded in 1990 by three MIT roboticists and best known for launching the Roomba in 2002, iRobot generated about $682 million in revenue in 2024. The company has faced growing pressure from lower-cost Chinese competitors such as Ecovacs Robotics, forcing price cuts and investment in product upgrades. Trade-policy headwinds also hit margins: U.S. tariffs imposed a 46% levy on imports from Vietnam (where iRobot manufactures many U.S.-bound vacuums) added roughly $23 million in costs in 2025, according to the company. Other notable context - Amazon’s prior proposed $1.4 billion acquisition of iRobot was terminated after a European competition probe. - Market share: iRobot has retained roughly 42% of the U.S. robotic vacuum market and about 65% of Japan’s market, per industry data. Why crypto investors and the broader markets should care - Distressed tech exits can reshape supplier and OEM relationships that feed into tokenized supply-chain products and hardware-backed asset plays. - Pre-packaged bankruptcies that transfer equity to creditors (here, a manufacturer) highlight how capital-stack priorities play out — a useful precedent for tokenized debt or equity structures that aim to protect operational continuity while restructuring claims. - Ongoing operations and the stated intent to pay creditors and suppliers in full under the plan could limit short-term disruption to partners, but equity holders will see dilution or elimination — an outcome digital-asset holders of tokenized shares would want to monitor closely. What to watch next - Court timeline and final approval in Delaware (targeted completion by Feb 2026). - Any changes to supply agreements or manufacturing footprints under PICEA ownership. - Treatment of creditors and how remaining liabilities are settled — signals for similar restructurings in hardware and supply-chain exposed firms. - Market reaction in related hardware and robotics equities and any spillover to tokenized asset sectors tied to manufacturing or IoT hardware. This restructuring marks a steep fall from iRobot’s earlier peak but is structured to keep the business running while shifting control to its primary manufacturer — a resolution that preserves operations even as equity holders are effectively wiped out. Read more AI-generated news on: undefined/news