SunPower Files for Bankruptcy, Seeks $45 Million Deal with Complete Solaria

SunPower, a solar energy company, filed for Chapter 11 bankruptcy and entered a $45 million agreement with Complete Solaria to sell part of its business. The company faces financial challenges, including a subpoena from the U.S. securities regulator, rising inventory levels, and a decline in the rooftop solar market.

Solar firm SunPower announced on Monday that it has filed for Chapter 11 bankruptcy in the United States and agreed to a 'stalking horse' arrangement with Complete Solaria to sell some of its business for $45 million in cash.

Shares of SunPower, based in San Jose, California, fell by about 29%, trading at 57 cents premarket on Tuesday. A stalking horse bid serves as an initial bid that other investors must surpass to acquire the asset or company.

Complete Solaria, another California-based entity specializing in solar technology, services, and installation, will purchase SunPower's Blue Raven Solar business, New Homes business, and non-installing Dealer network. SunPower initially bought Blue Raven for $165 million in 2021.

In its bankruptcy filing with the Delaware court, SunPower reported assets and liabilities between $1 billion to $10 billion. The company plans to continue the sale of its remaining assets and intends to liquidate and wind down operations post-sale.

Solar energy firms have faced inventory challenges amid a slump in the rooftop solar market. SunPower has struggled recently, including losing its CEO in February and receiving a subpoena regarding its accounting practices from U.S. regulators the same month.

These issues culminated last month when SunPower ceased several operations, paused new product shipments, and deactivated lease and purchase deals on its platform.

(With inputs from agencies.)