💥New Chapter 11 Bankruptcy - SunPower Corp. ($SPWR)💥

Solar energy company pursues a sale process with a stalking horse

On August 5, 2024, Richmond, CA-based SunPower Corp. ($SPWR) and 9 affiliates (collectively, the “debtors”) filed chapter 11 cases in the District of Delaware (Judge Goldblatt). The debtors sell solar energy systems: over half a million homes in the US sport SunPower branded solar products.

This wasn’t a surprise filing at all. The solar downturn is well documented; we just covered the iSun Inc. ($ISUN) cases last month. But compounding issues further, SunPower also had a slew of accounting issues. The debtors announced that they had to restate their ‘23 financials back in October ‘23, the U.S. Securities Exchange Commission (the “SEC”) issued a document subpoena to the debtors in February and Ernst & Young LLP (“EY”) resigned in June according to an 8-k filed July 3rd. According to that same 8-k: