iRobot shares surge 57.55% after-hours as Chapter 11 restructuring and Picea acquisition resolve financial uncertainty.

iRobot surged 57.55% in after-hours trading following the announcement of a Chapter 11 bankruptcy restructuring and acquisition by Picea, a Chinese contract manufacturing partner. The deal, framed as a strategic partnership rather than a hostile takeover, allows iRobot to retain its brand, innovation teams, and 500 jobs while integrating Picea’s manufacturing and technical capabilities. CEO Gary Cohen emphasized the transaction stabilizes the company’s finances, accelerates product development, and avoids liquidation. Despite bankruptcy proceedings, the restructuring ensures continuity of operations, customer support, and product launches, reducing uncertainty for stakeholders. The market interpreted the pre-packaged deal as a lifeline for iRobot, aligning with the CEO’s optimism about combined R&D and cost efficiencies.