SunPower Files for Chapter 11 Bankruptcy, Initiates Asset Sale

Solar firm SunPower has filed for Chapter 11 bankruptcy in the U.S. and entered into an agreement with Complete Solaria to sell parts of its business for $45 million. SunPower plans to continue asset sales and an efficient wind down of operations, following significant financial challenges.

Solar firm SunPower announced on Monday that it has filed for Chapter 11 bankruptcy in the United States. Alongside this, the company has entered a 'stalking horse' agreement with Complete Solaria to sell specific business units for $45 million in cash.

The stalking horse bid, a term used for an initial offer that sets the minimum price for future bidders, will see Complete Solaria acquiring SunPower's Blue Raven Solar business, New Homes business, and non-installing Dealer network. Complete Solaria is a California-based company specializing in solar technology, services, and installations.

SunPower, which acquired Blue Raven for $165 million in 2021, listed its assets and liabilities between $1 billion and $10 billion in a bankruptcy filing on Monday in Delaware. The company has indicated plans to continue selling its remaining assets and liquidate any residual properties, aiming for an efficient wind-down of its operations. Earlier this year, SunPower announced it would reduce its workforce by about 1,000 employees and close several of its business segments.

(With inputs from agencies.)