Major Solar Panel Maker Files for Bankruptcy, Will Sell Off Assets for $45 Million

The SunPower logo outside of its building in Austin, Texas, in April 2019. (Google Maps/Screenshot via The Epoch Times)

Solar panel company SunPower has filed for Chapter 11 bankruptcy in the United States and entered into a “stalking horse” agreement with Complete Solaria to sell a portion of its business.

The San Jose, California-based company filed for Chapter 11 protection on Aug. 6 in the U.S. Bankruptcy Court for the District of Delaware, where it listed assets and liabilities between $1 billion and $10 billion.

According to the filing, SunPower had $1.1 billion in debts and $1.2 billion in assets as of the end of 2023, including debts of up to $15.4 million with its largest creditor, Zyxel Communications Inc., and $4 million with tech firm Enphase Energy.

It also owes $3 million to Google and $3 million to Leonard Roofing, according to the filing.

The filing was lodged after SunPower announced in April that it was laying off approximately 1,000 people from its global workforce as it transitioned to a “low fixed-cost model.”

At the time, SunPower said the market has been “slower to recover” than it initially expected and that the layoffs, among other financial controls, were necessary to “safeguard” the company’s future.

That announcement was made after the company warned in December 2023 that it had breached a credit agreement and said it had “substantial doubt” about its ability to continue operating.

The warning was issued as California regulators slashed incentives for home and business owners to buy solar panels, sending sales tumbling.

Meanwhile, soaring interest rates have made borrowing more expensive, further dampening demand and investment in solar energy.

Elsewhere on Aug. 6, SunPower said it has entered an asset purchase agreement with California-based Complete Solaria, a solar technology, services, and installation company, for $45 million.

Deal Offers ‘Significant Opportunity’

Complete Solaria will serve as the “stalking horse buyer” for its Blue Raven Solar business—which it acquired for $165 million in 2021—its New Homes business, and its non-installing Dealer network, it said.

A stalking horse bid is typically used as a starting or minimally accepted offer prior to auction. It means other interested bidders will need to surpass that bid if they want to buy the asset or the company.

The deal is subject to court approval, although SunPower said it has asked the court to approve the transaction by mid to late September.

In addition, SunPower said it intends to sell its remaining assets through the bankruptcy process.

Tom Werner, executive chairman at SunPower, said SunPower has made solar energy more accessible to Americans for nearly 40 years and is confident Complete Solaria will “carry forward our vision to shape the future of residential solar as a pioneer in this space.”

“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 said.

“We are working to secure long-term solutions for the remaining areas of our business, while maintaining our focus on supporting our valued employees, customers, dealers, builders, and partners,” he concluded.

SunPower stock dropped nearly 44 percent on Tuesday after the bankruptcy filing was announced.

Shares of the company are already down 94 percent this year.

The Epoch Times has contacted a spokesperson for SunPower for further comment.

Reuters contributed to this report.