SunPower files for bankruptcy, plans to sell off assets — stock drops more than 30%

Core Points - SunPower has filed for bankruptcy due to high interest rates and allegations of misconduct in reporting practices [1][2] - The company's stock has fallen 32% to 55 cents per share, with a nearly 90% decline this year [1] - SunPower's Chapter 11 filing lists assets and liabilities between $1 billion to $10 billion, with TotalEnergies as its largest stakeholder [1] - The company plans to sell its Blue Raven Solar and new homes businesses, along with its non-installing dealer network, to Complete Solaria for $45 million, pending court approval [1][2] Company Situation - SunPower's stock fell below $1 after halting new leases, product shipments, and installations [2] - The residential solar sector is facing decreased demand due to high interest rates, leading to excess inventory [2] - The U.S. Securities and Exchange Commission has subpoenaed SunPower regarding revenue recognition practices in its quarterly reports from 2023 [2] - Ernst & Young resigned as SunPower's independent accountant due to concerns over the company's financial statements and allegations of management misconduct [2] Financial Health - In December, SunPower breached a credit agreement and expressed "substantial doubt" about its ability to continue operations [3]