SunPower Files for Chapter 11 Bankruptcy And Plans $45 Million Asset Sale to Complete Solaria

Despite solar energy solutions making waves for electric vehicles (EVs) and other renewable energy applications in the United States (U.S.), SunPower, a residential solar technology and energy services provider, has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.

The company, which has been facing challenges in recent months, also announced plans to sell key parts of its business to Complete Solaria for $45 million in cash. In its bankruptcy filing, SunPower reported assets and liabilities between $1 billion and $10 billion. As part of its restructuring efforts, the company has entered into a “stalking horse” agreement with Complete Solaria to sell its Blue Raven Solar and New Homes businesses, along with its non-installing Dealer network. The proposed sale is subject to court approval, with SunPower requesting the court to approve the transaction by mid-September.

Tom Werner, Executive Chairman at SunPower, expressed the situation stating, “In light of the challenges SunPower has faced, the proposed transaction offers a significant opportunity for key parts of our business to continue our legacy under new ownership.”

Werner also stated that the company is working to secure long-term solutions for the remaining areas of its business while supporting employees, customers, dealers, builders, and partners.

The bankruptcy filing follows a series of setbacks for SunPower. In July, the company halted several key operations including new product shipments and leasing and purchasing agreements. In addition, SunPower has faced allegations of misconduct in its reporting practices, with the U.S. Securities and Exchange Commission subpoenaing the company in February for documents related to revenue recognition practices in its 2023 quarterly reports.

SunPower, founded in 1985, has been a significant player in making solar energy more accessible to Americans. Despite recently adding the Tesla Powerwall 3 to its lineup, the company still faced challenges in the industry. As of now, the company has requested court approval to access the necessary funds to continue business operations and meet employee obligations during the Chapter 11 process.

Read More: SunPower Expands Solar Portfolio with Tesla Powerwall 3

As the solar industry continues to evolve, SunPower’s bankruptcy and asset sale serve as a reminder of the volatility and competitive pressures in the renewable energy market. The company expects to complete the sale of its assets by late 2024.

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