Solar power company SunPower (NASDAQ:SPWR) said Tuesday that it filed for Chapter 11 bankruptcy protection on Monday, August 5, 2024.
The company, which has faced mounting financial pressures in recent months, is seeking to restructure its debt and maximize the value of its assets.
As part of its bankruptcy proceedings, SunPower has entered into a "stalking horse" agreement with Complete Solaria, Inc. to sell its Blue Raven Solar, New Homes, and non-installing Dealer businesses for $45 million in cash.
This agreement sets a baseline bid for the assets, which will be open to higher offers in a court-supervised auction process.
The bankruptcy filing comes after a tumultuous period for SunPower. The company's CEO stepped down in February, and it subsequently received a subpoena from the Securities and Exchange Commission related to its accounting practices.
In June, SunPower paused several operations, including new product shipments and customer contracts.
The company has estimated its assets and liabilities to be between $1 billion and $10 billion. The bankruptcy filing, as expected, had a significant impact on SunPower's stock price, which is down more than 31% on Tuesday.
As the bankruptcy process unfolds, SunPower will work to reorganize its business and explore options for its remaining assets.