Anika Begay
Workers install solar panels during the installation of a SunPower system on a home in Napa, California, on July 17, 2023.
David Paul Morris, author of Getty Images
The solar installer on the roof Solar power filed for bankruptcy after months of battling high interest rates and allegations of misconduct in its reporting practices.
SunPower shares fell 32% to 55 cents a share on Tuesday. Its stock has fallen nearly 90% this year.
SunPower listed assets and liabilities of between $1 billion and $10 billion in its Chapter 11 filing filed Monday evening in the U.S. Bankruptcy Court for the District of Delaware. Its largest shareholder is Total energyaccording to FactSet.
SunPower is selling its Blue Raven Solar and New Homes businesses, as well as its non-installer dealer network, to Complete Solaria for $45 million, subject to court approval, according to a statement released Monday evening. The company has asked the court to approve the sale by mid-September.
SunPower plans to sell its remaining assets through bankruptcy, the company said. Its stock fell below $1 last month after the company halted new leases, product shipments and installations.
The residential solar sector has been hit hard as high interest rates have depressed demand, leaving companies with too much inventory on hand. But SunPower shares have also been pressured by allegations of misconduct in its reporting practices.
The U.S. Securities and Exchange Commission has subpoenaed SunPower for documents about its revenue recognition practices in its 2023 quarterly reports, according to a filing in February.
Ernst & Young, SunPower’s independent accounting firm, resigned in June because it no longer wanted to be associated with the company’s financial statements, citing allegations that senior management had engaged in improper conduct related to the financial statements.
In December, SunPower breached a credit agreement and warned that there was “substantial doubt” about its ability to continue operating.
