Item 2.05. Costs Associated with Exit or Disposal Activities.
On January 6, 2021, SunPower Corporation (the "Company") adopted a restructuring
plan to realign and optimize workforce requirements in light of the planned
closure of SunPower Manufacturing Oregon, LLC, its Hillsboro, Oregon
manufacturing facility. In connection with the restructuring plan, which
includes actions to be implemented in the first quarter of 2021 and is expected
to be completed by the third quarter of 2021, the Company expects approximately
170 primarily manufacturing employees to exit over a period of approximately 3
to 6 months. The Company expects to incur restructuring charges totaling
approximately $10.0 million to $12.0 million, consisting primarily of severance
benefits (between $4.0 million and $5.0 million) and real estate lease
termination, decommissioning, and other associated costs (between $6.0 million
and $7.0 million). A substantial portion of such charges are expected to be
incurred in the first and second quarters of fiscal 2021, and the Company
expects all of restructuring charges to be cash. The actual timing and costs of
the plan may differ from the Company's current expectations and estimates.
Item 8.01. Other Events.
On January 7, 2021, the Company issued a press release announcing that it will
close SunPower Manufacturing Oregon, LLC, its solar panel manufacturing plant in
Hillsboro, Oregon, but noting that the Company is simultaneously working to
explore other options, such as selling the plant, exploring a joint venture or
other potential partnerships. A copy of the press release is attached as Exhibit
99.1 hereto.
Forward-Looking Statements
The above information contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including, but not limited
to, statements regarding the Company's plans for, and the timing and impact of,
shutdown of the Oregon manufacturing facility, and potential alternatives, and
the Company's forecasts or projections of the extent or timing of restructuring
charges and related actions. These forward-looking statements are based on the
Company's current assumptions, expectations, and beliefs and involve substantial
risks and uncertainties that may cause results, performance or achievement to
materially differ from those expressed or implied by these forward-looking
statements. Factors that could cause or contribute to such differences include
but are not limited to: (1) the timing and execution of restructuring plans; (2)
employee management and retention issues that may arise; (3) estimates and
assumptions related to the cost of exiting employees, modifying or terminating
lease and other real estate obligations, and other associated costs; (4)
potential disruptions to our operations and supply chain that may result from
epidemics or natural disasters, including impacts of the Covid-19 pandemic; and
(5) changes in public policy, including the imposition and applicability of
tariffs. A detailed discussion of these factors and other risks that affect the
Company's business is included in filings the Company makes with the Securities
and Exchange Commission (the "SEC") from time to time, including the Company's
most recent reports on Form 10-K and Form 10-Q, particularly under the heading
"Risk Factors." Copies of these filings are available online from the SEC or on
the SEC Filings section of the Company's Investor Relations website at
investors.sunpower.com. All forward-looking statements in this Current Report on
Form 8-K are based on information currently available to the Company, and the
Company assumes no obligation to update these forward-looking statements in
light of new information or future events.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description
99.1 Press release dated January 7, 2021
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