US residential solar provider SunPower has filed for voluntary relief under Chapter 11 of the US Bankruptcy Code. Concurrently, the company has entered into an asset purchase agreement (APA) with Complete Solaria—a merged entity of Solaria Corporation and Complete Solar—designating it as the stalking horse bidder for SunPower's Blue Raven Solar business, New Homes business, and non-installing Dealer network.
This arrangement allows Complete Solaria to set a baseline bid of $45 million in cash for these assets, pending court approval, with a sale anticipated by mid to late September.
The move to Chapter 11 follows a recent communication from Roth Capital indicating that SunPower had ceased several operations, including new shipments and financing options. SunPower is seeking to use Section 363 of the Bankruptcy Code to facilitate the sale of its remaining assets.
Tom Werner, SunPower's executive chairman, remarked, “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. 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.”
SunPower's financial struggles began last year when it breached a credit agreement in December. The company had been unable to access $53.7 million in revolving commitments, leading to a temporary waiver until January 2024. The company also faced legal challenges, including a lawsuit for allegedly misreporting revenue and inventory costs, which led to restatements of financial statements for fiscal year 2022 and the first two quarters of 2023. For fiscal year 2023, SunPower reported a net loss of $247 million.
Despite securing over $300 million in project financing commitments in early 2024 and announcing the departure of CEO Peter Faricy, SunPower continued to experience financial difficulties. In April, the company implemented around 1,000 job cuts and closed several business segments. SunPower had also ceased various activities, including new shipments, as of July.
