Heading into the weekend, iRobot ($IRBT) is one of those stocks that can still move while being effectively broken underneath.

On December 14, 2025, the company filed for Chapter 11 bankruptcy as part of a prepackaged restructuring with its secured lender and primary supplier, Picea. This wasn’t an open-ended filing. The plan is already agreed to.

Shortly after, Nasdaq notified iRobot that its stock will be delisted, with trading suspended on December 22. The company does not plan to appeal.

Starting Monday, $IRBT is expected to trade on the OTC market. This is common in bankruptcies and does not mean the situation improved. OTC trading simply allows continued speculation, usually with thinner liquidity, wider spreads, and more broker restrictions.

The most important detail is buried in the restructuring documents:

Existing common stock will be cancelled and extinguished, and shareholders are expected to receive no recovery.

Under the plan, Picea receives 100% of the new equity. There is no buyout premium, no conversion, and no carve-out for current shareholders.

Despite this, the stock can still move. Shorts cover, momentum traders chase, and low liquidity can exaggerate price action. That movement does not reflect value. The filings explicitly warn that trading during Chapter 11 is highly speculative and that prices may have no relationship to recovery.

If you hold $IRBT into OTC trading, understand the risks clearly. Liquidity can disappear without warning, brokers may restrict buying or selling, and the endpoint is still cancellation once the plan becomes effective.

This isn’t about being bearish or bullish. It’s about capital preservation. OTC trading on Monday doesn’t change the outcome, it just extends the window for mistakes.

Stay safe.