SunPower Files for Chapter 11 Bankruptcy

SunPower Corporation has filed for Chapter 11 bankruptcy in Delaware, citing high interest rates, changes to California rooftop solar subsidies, and internal financial misconduct as major challenges. The company plans to sell its Blue Raven Solar business, New Homes business, and non-installing Dealer network to Complete Solaria for $45 million, subject to court approval by mid to late September. SunPower's stock has plummeted nearly 90% this year, exacerbated by halted product shipments and deactivated lease agreements. The company faces additional scrutiny from the SEC over revenue recognition practices, and its auditor Ernst & Young resigned in June over these concerns. Despite these hurdles, SunPower aims to support its employees and stakeholders while liquidating remaining assets. CEO Tom Werner expressed hope that the sale to Complete Solaria would preserve key parts of the business and continue its legacy under new ownership.