MJP –
The solar power behemoth SunPower, with its roots in San Jose, has declared Chapter 11 bankruptcy. This follows the layoff of over 350 workers in California that occurred slightly over a month ago.
Executives of SunPower have announced plans to reorganize the company and sell off parts to Complete Solaria, based in Fremont.
The lights in millions of homes across the country have been kept on by SunPower’s solar panels for nearly 40 years.
“They were one of the early manufacturers of premium solar panels, they made some of the best solar panels in the business,” commented Dustin Mulvaney, an environmental studies professor at San Jose State University.
However, Monday saw the firm’s announcement that they would be submitting for Chapter 11 bankruptcy.
“As solar panels got cheaper and cheaper, it just became harder and harder for premium solar panel manufacturers that were using a little bit older technology to compete with up-and-rising stars from China, really,” according to Mulvaney.
According to Mulvaney, the company’s decision to halt production a few years ago has not helped matters.
SEE MORE –
Balloon Blast! Minnesota Faces Surprise Layoffs as Medical Company Announces Workforce Reductions
But he adds that the corporation also took a hit when policies changed, making solar panels less attractive.
“We’ve undermined incentives, it’s not as economic for a ratepayer in PG&E territory to put solar panels in their roof, it just doesn’t pencil out all the time and that has hit the rooftop solar industry pretty hard,” according to him.
“I think the state has caused harm to an industry which it essentially helped to start,” said Dan Kammen, an energy expert at UC Berkeley.
What comes next for the world’s largest seafood restaurant company, Red Lobster, after its bankruptcy filing?
On Monday, SunPower announced its bankruptcy and stated its intention to sell off part of its assets to a Fremont-based business named Complete Solaria for $45 million.
“Given the difficulties SunPower has encountered, the suggested acquisition presents a substantial chance for important components of our company to carry on our heritage under new management,” stated SunPower’s executive chairman, Tom Werner.
An ex-employee of SunPower informs us that at the tail end of June, the last San Jose store off of Mabury Road closed its doors. The state’s Economic Development Department reports that 358 individuals were let go from five separate California locations at that time.
What Kammen meant was that they were heavily indebted for quite some time.
According to Kammen, he anticipated this even though he had SunPower panels installed on his roof.
“We now know that they’ve been doing what we call fire sales, selling off some divisions at low cost to raise some capital which normally you have to do if you’re paying off employees,” according to him.
