Robotics company iRobot is adjusting its corporate real estate footprint in preparation for a more prudent future as it works through a bankruptcy filing and court-supervised acquisition.
The Bedford, Massachusetts-based maker of Roomba robotic vacuums renegotiated the lease agreement for its headquarters, cutting a portion of its previous footprint and extending the revised deal for another seven years. The deal shrinks iRobot's presence to about 102,000 square feet from the more than 253,000 square feet it occupied at its peak across several buildings in the Bedford Business Park.
While the renegotiated deal with landlords Shorenstein Properties and Tritower Financial Group requires iRobot to increase its security deposit by an additional $2 million, it will also reduce the company's monthly payments as part of its effort to lower ongoing rent obligations.
An iRobot spokesperson confirmed the new lease arrangement with CoStar News and said there would be "no change" to its Bedford campus. The company did not respond to additional questions about the downsizing detailed in information filed with the Securities and Exchange Commission.
The robotics company's restructuring efforts follow its bankruptcy filing earlier this month. It reported more than $480.3 million in debt, and executives told the court it intends to emerge from Chapter 11 protection "as quickly as possible, and no later than February 21, 2026," CFO Karian Wong wrote in a declaration included in the filing.
The company's primary contract manufacturer, Picea, is set to acquire iRobot through a court-supervised process and receive 100% of the equity interests in the company.
Internal headwinds
The company recently warned investors of a potential bankruptcy after facing financial and structural challenges over the past couple of years.
Since the collapse of its $1.45 billion merger with Amazon early last year, the company has tried to sublease various portions of its Bedford campus as it faced plummeting sales, rising competition, new tariff concerns and mounting debt.
The company reported less than $149 million in revenue in the third quarter, down from more than $193 million reported for the same period last year.
While the downsizing leaves the Shorenstein-led venture with some space to fill, it could also prove to be a win for the landlords. The two firms acquired the eight-building business park earlier this year as part of a $96 million portfolio deal.
As part of the renegotiated deal with iRobot, the subleases that the Roomba maker was able to land will now roll into agreements directly with Shorenstein and Tritower.
What's more, the Boston office market is gradually finding its way to more stable ground as part of its own post-pandemic recovery.