SunPower Files Chapter 11, Agrees $45m Asset Sale

• SunPower files for Chapter 11 bankruptcy, agrees to sell key businesses in $45 million deal. Transition to new ownership underway.

US residential solar company SunPower has filed for Chapter 11 bankruptcy protection and agreed to sell several of its businesses in a USD-45-million cash deal. The company has entered into a "stalking horse" agreement with Complete Solaria Inc to sell its Blue Raven Solar business, New Homes business, and non-installing dealer network.

SunPower's executive chairman, Tom Werner, stated that the proposed transaction offers a significant opportunity for key parts of the business to continue under new ownership. The company plans to complete the transaction by mid to late September and pursue a sale of its remaining assets, followed by a liquidation of any remaining assets and an efficient wind-down of operations.

In April, SunPower announced cost-cutting measures including laying off about 1,000 employees and closing certain direct sales divisions. Last month, the company suspended various services within its offering, such as new lease and power purchase agreement sales.

What led to SunPower's Chapter 11 bankruptcy filing and business sell-off?

• SunPower's Chapter 11 bankruptcy filing was a result of financial struggles and the need to restructure its business operations.
  
• The company faced challenges due to increased competition in the solar industry, declining solar panel prices, and the impact of the COVID-19 pandemic on its business.
  
• SunPower's decision to sell off several of its businesses was part of its restructuring plan to focus on key parts of the business and streamline operations.
  
• The agreement with Complete Solaria Inc to sell Blue Raven Solar business, New Homes business, and non-installing dealer network was a strategic move to generate cash and reduce debt.
• SunPower's executive chairman, Tom Werner, emphasized that the proposed transaction provides an opportunity for the company's key parts to continue under new ownership and ensure a more sustainable future for the business.