SunPower

SunPower Corporation is a solar energy company that provides solar panels, storage systems, and other products and services.

On August 5, 2024, SunPower announced that it entered into an asset purchase agreement with Complete Solaria, Inc. to acquire certain assets associated with SunPower’s Blue Raven Solar business, New Homes business, and the Non-Installing Dealer Network business. To facilitate this proposed sale, the Company concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware, with Complete Solaria serving as its Stalking Horse Buyer. On September 16, 2024, Complete Solaria was named the winning bidder for the assets.

SunPower was left with a significant amount of solar module and related inventory that was not subject to the sale to Complete Solaria transaction. Hilco Commercial Industrial, LLC (Hilco) was engaged to monetize this inventory. This allowed Hilco to manage the company’s existing infrastructure to stand up a process for liquidating the remaining inventory.

Throughout the process, Hilco was able to navigate several key challenges:

• The solar panel industry is oversaturated with inventory creating a demand supply imbalance.
• Hilco worked within a very condensed timeframe.
• Sales were made without the assurance of a warranty from the OEM.

Hilco successfully facilitated the sale of  over 120 megawatts with related BOS (balance of system) of solar panels and related products over a 90-day period by leveraging the company’s existing network and infrastructure.

This was achieved through a Company-Assisted Liquidation of Assets, a strategic approach in which Hilco initiates the liquidation process before a company ceases operations. In this model Hilco believes the company can achieve a higher value for the remaining inventory when attempted to first sell through existing customers and networks.

The engagement lasted ~90 days, which is shorter than usual, as an orderly process of this type would usually be conducted over 180 days. With the execution of multiple marketing campaigns and a tailored customer database, Hilco was able to reach a wide and engaged audience.