SunPower, the California-based solar developer and operator, has filed for bankruptcy protection after slashing jobs and saying it would restate its financial results for the last two years on cost misclassification.
The company also said it had entered into a stalking horse deal with Complete Solaria, which would buy some of SunPower's business for $45 million in cash. Solaria would buy the Blue Raven Solar project and SunPower's New Homes business. Per Reuters, when SunPower acquired Blue Raven Solar, it paid $165 million in 2021.
The bankruptcy filing estimated the company's assets and liabilities to be between $1 billion and $10 billion, Reuters reported.
Earlier this year, SunPower, which saw its stock shed as much as 60% over the 12 months to April, said that it would cut 1,000 jobs and revise financial reports. According to Bloomberg, the revision would reduce the company's profits by between $25 million and $25 million.
In July, media reported that SunPower would suspend new solar installations and halt shipments, causing its stock to plunge by nearly 40% in afternoon trading on July 18.
The solar company informed dealers that starting September 17, it will not support new leases, power purchase agreements (PPA) sales, or new project installations. This decision, outlined in a letter included in a research note from Roth MKM, became the latest signal of severe operational problems for the solar developer.
French energy giant TotalEnergies SE, which owns about 65% of SunPower, now faces the repercussions of these developments.
A weakening of the rooftop solar market in California was one big reason behind SunPower's troubles, as inventories built up amid slackening demand. Regulatory reforms in the state contributed to the weaker demand as they removed a large part of the incentives that drove people to put solar on their rooftops.
By Irina Slav for Oilprice.com
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