iRobot debt acquired by contract manufacturer as bankruptcy looms

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The ton of money of among minority house names in robotics have actually remained to sink. In a declaring with the united state Stocks and Exchange Compensation recently, iRobot Corp. stated that a Chinese firm has actually obtained its financial debt which it is still searching for choices to personal bankruptcy.

Santrum Hong Kong Co., a subsidiary of Shenzhen, China-based Picea Robotics Co., has actually obtained a credit scores contract from associates of The Carlyle Team worth $190.6 million in primary and rate of interest, stated the SEC declaring.

” Since November 24, 2025, the firm owed Picea $161.5 million for the production of items, $90.9 numerous which was unpaid,” stated iRobot. “The firm and Picea are participated in energetic conversations pertaining to an equally acceptable resolution of the non-payment by the firm of quantities owed to Picea.”

In other words, iRobot is not presently able to pay its agreement producer, which is currently likewise its main lender. The Bedford, Mass.-based robot vacuum cleaner firm owes an overall of greater than $350 million.

Roomba manufacturer encounters several challenges

Given that 2002, iRobot has actually offered greater than 50 million systems worldwide. In 2016, lobbyist financiers pressed the firm to offer its protection system, restricting its capability to branch out.

iRobot’s economic difficulties go back to a minimum of 2022, when founder and chief executive officer Colin Angle shot down insurance claims that its Roombas may share exclusive details while mapping homes.

Amazon.com Inc. revealed strategies to get iRobot for $1.7 billion, yet the United State Federal Profession Compensation elevated antitrust issues. The firm likewise gave up 10% of its personnel in August 2022, condemning them on a restructuring, weak need, and rising cost of living.

In 2023, the European Union included in iRobot’s antitrust concerns, despite the fact that the UK Competitors and Markets Authority had actually gotten rid of the purchase. The EU’s initial searching for showed that the procurement “might limit competitors” in the robot hoover market.

At the very same time, more affordable versions from China and even more qualified competitors from suppliers such as Dyson influenced iRobot, as did its postponed efforts to enter the robot mower market. Amazon and iRobot cancelled their handle very early 2024, bring about even more discharges and Angle’s separation as chief executive officer.

iRobot after that called Gary Cohen as Chief Executive Officer that Might. In late 2024, iRobot gave up 105 workers, lowering its international labor force by almost 50% from the beginning of that year.

In August 2025, iRobot kept in mind that its second-quarter incomes of $127.6 million were down 23.3% year over year. It was melting with its continuing to be $24.8 million in cash money, partially from the Amazon negotiation, since September.

Early last month, the firm reported that it had “no resources” of added resources which it was discovering its alternatives in the hopes of locating a companion or purchaser for the popular customer brand name.

Graph developed by Google Gemini and confirmed by The Robotic Record.

iRobot leads lower

In the SEC declaring, iRobot kept in mind that its supply cost dropped in response to its upgrade on its calculated evaluation procedure. It stated a possible prospective buyer took out from arrangements in October after using “a rate per share to get our firm that was considerably less than the trading cost of our supply over the current months before the counterparty’s withdrawal.”

iRobot stated it will certainly not offer more updates instead of see its supplies remain to decrease. “It is not likely that our recurring evaluation of calculated choices will certainly cause any kind of purchase being consummated beyond an insolvency procedure,” it recognized.

Such a procedure would certainly cause lenders and investors obtaining no return, and the firm may after that need to close down.

Santrum provided iRobot up until Jan. 15, 2026, to offer audited financials and keep a minimal degree of core properties under its financing terms. This hold-ups repayment of $5.1 million in rate of interest that scheduled in Oct. 28.

If the firm is not able to fulfill those problems, and if Santrum determines not to expand the waiver, Picea can after that take properties, and iRobot would certainly be required to proclaim personal bankruptcy. The Robotic Record will certainly proceed complying with growths very closely.

The message iRobot financial debt obtained by agreement producer as personal bankruptcy impends showed up initially on The Robotic Record.