iRobot Shares Plummet 13.8% Amid Bankruptcy and Privatization Plan
iRobot Corporation (NASDAQ: IRBT) saw its stock plunge 13.80% following the disclosure of a pre-packaged Chapter 11 bankruptcy and a going-private transaction. The Roomba-maker's restructuring agreement with Shenzhen PICEA Robotics and Santrum Hong Kong will transfer full equity ownership, leaving existing shareholders with no recovery.
The deal marks a dramatic fall for the once high-flying robotics firm, whose shares have tumbled from their 2021 peak of $161.16 to just $4.32. Market pressures including weak sales, tariff impacts, a failed Amazon acquisition, and rising competition have driven the company to this court-supervised restructuring.
Despite the financial upheaval, iRobot's operations are expected to continue uninterrupted. The privatization MOVE will delist the company from Nasdaq, closing a chapter on its 20-year run as a public company.
