iRobot shares surge 19.75% after-hours as Chapter 11 filing and Picea acquisition plan stabilize operations and reduce debt.

iRobot surged 19.75% in after-hours trading following its Chapter 11 bankruptcy filing and announcement of a pre-packaged restructuring plan. The company revealed it would be acquired by its secured lender and manufacturer, Picea Robotics, in a court-supervised process expected to conclude by February 2026. This move aims to stabilize iRobot’s finances, reduce debt, and allow continued operations without disrupting customer services, app functionality, or product support. While existing shareholders face a wipeout, the restructuring provides clarity and operational continuity, mitigating concerns over prolonged uncertainty. The stock’s sharp rise reflects investor relief that the pre-arranged deal avoids prolonged default scenarios, despite the negative implications for equity holders.