SunPower Files Chapter 11 Bankruptcy, Sells Business to Complete Solaria

SunPower has filed for Chapter 11 bankruptcy in the U.S. and plans to sell parts of its business to Complete Solaria for $45 million. The company’s shares fell significantly, and it aims to complete the sale by late 2024, concluding SunPower's operations since its founding in 1985.

In a significant financial move, SunPower has filed for Chapter 11 bankruptcy protection in the United States, announcing its intention to sell parts of its business to Complete Solaria for $45 million in cash.

The solar firm experienced a sharp decline in its stock price, plummeting around 45% to 44 cents premarket on Tuesday after declaring assets and liabilities between $1 billion to $10 billion. This filing was officially made with the bankruptcy court in Delaware late on Monday.

Despite technically being a Chapter 11 process, analyst Pavel Molchanov from Raymond James indicated that this effectively signals the liquidation of SunPower, marking the end of an era for a company founded in 1985. The asset sale process is expected to conclude by late 2024, after which SunPower will terminate its operations. This development follows a series of setbacks, including a leadership change and regulatory scrutiny earlier this year.

(With inputs from agencies.)