SunPower (NASDAQ:SPWR) stock is falling hard on Tuesday after the solar power and technology company filed for Chapter 11 bankruptcy late yesterday.
That bankruptcy filing isn’t an attempt for the company to restructure its business and come out leaner. Instead, SunPower is planning to wind down its operations during the bankruptcy process.
SunPower also already plans to sell its Blue Raven Solar installation and new home businesses in a stalking horse bid. Complete Solaria (NASDAQ:CSLR) is planning to acquire these assets from the company.
SunPower executive chairman Tom Werner said the following about the bankruptcy filing and asset sale:
“In light of the challenges SunPower has faced, the proposed transaction offers a significant opportunity for key parts of our business to continue our legacy under new ownership. We are working to secure long-term solutions for the remaining areas of our business, while maintaining our focus on supporting our valued employees, customers, dealers, builders, and partners.”
Analysts were already expecting SunPower to file for bankruptcy. That’s due to it alerting dealers on July 17 that it wouldn’t offer any new installations. Other writing on the wall includes a CEO change, an accountant loss and a failed attempt at a restructuring just in the first half of this year, reports Bloomberg.
How This Affects SPWR Stock
SunPower stock will likely continue its negative movement in the days after this bankruptcy news. Additionally, it is also likely the company will receive a delisting notice for its shares.
Today’s bankruptcy news has shares of SPWR stock falling 44.1% as of Tuesday morning.
There are more stock market stories traders will want to read about below!
We have all of the hottest stock market news that investors need to know about on Tuesday! A few examples include what’s happening with shares of VBI Vaccines (NASDAQ:VBIV) and Lytus Technologies (NASDAQ:LYT) stock today, as well as the biggest pre-market stock movers this morning. You can find out more on these matters at the following links!
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- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
