SunPower (NASDAQ:SPWR) has filed for Chapter 11 bankruptcy protection as of Monday, August 5, 2024, the solar power company announced on Tuesday. The filing comes amid significant financial strain as the company seeks to restructure its debt and maximize asset value. Currently, shares of the company are trading more than 20% lower intra-day.

In conjunction with the bankruptcy proceedings, SunPower has entered a "stalking horse" agreement with Complete Solaria, Inc. to sell its Blue Raven Solar, New Homes, and non-installing Dealer businesses for $45 million in cash. This agreement sets a minimum bid for these assets, which will be available for higher offers during a court-supervised auction.

The bankruptcy filing follows a challenging period for SunPower, marked by the resignation of its CEO in February and a subpoena from the Securities and Exchange Commission regarding its accounting practices. Additionally, in June, the company halted several operations, including new product shipments and customer contracts.

SunPower estimates its assets and liabilities to be between $1 billion and $10 billion.