Workers install SunPower solar panels on a home in Napa, California, on July 17, 2023.
David Paul Morris | David Paul Morris Bloomberg | Getty Images
Rooftop Solar Installer solar power The company has filed for bankruptcy after facing accusations of high interest rates and poor reporting practices.
SunPower shares fell 32% to 55 cents on Tuesday. Its share price has plummeted nearly 90% this year.
SunPower’s Chapter 11 filing late Monday in U.S. Bankruptcy Court for the District of Delaware listed assets and liabilities between $1 billion and $10 billion. Its biggest stakeholder is total energyaccording to FactSet.
SunPower will sell its Blue Raven Solar and new home operations and non-installation dealer network to Complete Solaria for $45 million, subject to court approval, according to a statement late Monday. The company has asked the court to approve the sale by mid-September.
SunPower said it plans to sell remaining assets through bankruptcy proceedings. Shares fell below $1 last month after the company halted new leases, product shipments and installations.
The residential solar industry has been hit hard as high interest rates have dampened demand, leaving companies with too much inventory on hand. But SunPower’s stock has also come under pressure over allegations of misconduct in its reporting practices.
The U.S. Securities and Exchange Commission issued a subpoena to SunPower in February, requesting documents regarding its revenue recognition practices in its 2023 quarterly report, according to a filing.
Ernst & Young, SunPower’s independent accountant, resigned in June because it did not want to be associated with the company’s financial statements, citing alleged financial statement-related misconduct by members of senior management.
In December, SunPower breached its credit agreement and warned there were “significant doubts” about its ability to continue operating.
