(Bloomberg) — iRobot Corp. filed for chapter after reaching a restructuring help settlement that may hand management of the patron robotic maker to Shenzhen PICEA Robotics Co., its essential provider and lender, and Santrum Hong Kong Co.
The Massachusetts-based firm filed for Chapter 11 chapter within the District of Delaware on Dec. 14, in response to a information launch.
Below the restructuring, vacuum cleaner maker Shenzhen PICEA will obtain your complete fairness stake within the reorganized firm. The corporate’s frequent inventory can be worn out underneath the proposed Chapter 11 plan.
The plan will permit the debtor to stay as a going concern and proceed to meets its commitments to staff and make well timed funds in full to distributors and different collectors for quantities owed all through the court-supervised course of, in response to an iRobot assertion.
“Right this moment’s announcement marks a pivotal milestone in securing iRobot’s long-term future,” iRobot Chief Govt Officer Gary Cohen stated in an announcement.
The corporate warned of potential chapter in December after years of declining earnings. On the time, Shenzhen PICEA acquired a significant portion of its debt from US investor Carlyle Group Inc., and iRobot stated it was in talks to safe new capital and deal with the excellent debt.
Based in 1990 by three MIT engineers, iRobot has developed over greater than three a long time. It loved important early success, promoting over 50 million robots, in response to its web site. Earnings started to say no since 2021 as a result of provide chain headwinds and elevated competitors.
A hoped-for by acquisition by Amazon.com in 2023 collapsed over regulatory considerations.
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