iRobot Shareholders Face Total Loss as Acquisition Finalizes

The publicly traded chapter of iRobot Corporation has reached its definitive conclusion. As of today, the completion of its acquisition by Shenzhen PICEA Robotics Co., Ltd. has rendered the company's stock effectively worthless, marking a total loss for former equity holders.

The strategic transaction, executed through a pre-arranged Chapter 11 bankruptcy process, has transformed iRobot into a privately held, wholly-owned subsidiary of its Chinese manufacturing partner. While the core Roomba business will continue operations under the new ownership, the transition extinguishes all public shareholder value.

The financial unraveling that led to this outcome unfolded over a series of critical events:

• January 2024: A planned $1.4 billion acquisition by Amazon collapses following opposition from European Union antitrust regulators. This leaves iRobot with diminished liquidity and significant ongoing costs.
• March 2025: In its annual report (Form 10-K), the company's management expresses "substantial doubt" about its ability to continue as a going concern without drastic intervention.
• December 15, 2025: iRobot files for Chapter 11 creditor protection, simultaneously entering a restructuring agreement with Shenzhen PICEA to avoid complete liquidation.
• January 23, 2026: The acquisition by Picea is formally closed, permanently eliminating the public equity.

The confirmed reorganization plan stipulates that Picea assumes 100% of the equity interests. Consequently:
* All existing common shares have been canceled without consideration
* No distribution will be made to previous shareholders
* Former investors hold no stake in the reorganized entity

Final Trading and "Zombie" Status

In the final stages of the bankruptcy proceeding, iRobot's shares traded under the ticker IRBTQ at residual values around $0.05. These nominal prices reflected the winding down of market activity rather than any residual claim for stockholders.

Should investors sell immediately? Or is it worth buying iRobot?

With the deal now finalized, the stock faces formal delisting. Market participants classify such remaining quotes as typical "zombie" valuations in the terminal phase of an equity cancellation, acknowledging that all remaining enterprise value flows solely to secured creditors and the new owner.

"iRobot Safe" and the New Corporate Framework

A key component of the acquisition is the establishment of "iRobot Safe," a new, independent U.S. subsidiary. This entity is designed to operate as a governance and data privacy firewall, specifically handling U.S. consumer data to address regulatory concerns related to the shift to Chinese ownership.

This structure enables the continuation of iRobot's business but does not alter the outcome for former shareholders, whose interests were not transferred into the new framework.

The focus now shifts entirely away from public markets and toward stabilizing the robotic vacuum business within its private ownership structure. For previous investors, the iRobot stock narrative is conclusively closed.