Solyndra shuts down, 1,100 jobs lost
Solyndra LLC announced Wednesday morning that it will file for bankruptcy and is shutting down its manufacturing operations.
About 1,100 full-time and temporary employees are being laid off effective immediately.
Solyndra says it will file a petition for Chapter 11 bankruptcy while it "evaluates options," the press release says, including selling the business and licensing its technology and manufacturing expertise.
The company received a $535 million loan guarantee from the Department of Energy and was touted in a visit last year by President Barack Obama as the type of business the country needed. That has put it in the cross-hairs of critics of the president’s energy policies, a situation that the latest development will likely intensify.
Solyndra said it had a strong start to the year and was working on "a number of orders for very large commercial rooftops." But it couldn’t grow fast enough to compete with large foreign manufacturers including those in China’s burgeoning solar industry.
The company also attributed its problems to a "global oversupply of solar panels," and said market uncertainty about government incentive programs in Europe and a decline in credit markets had led to price compression.
"Distributed rooftop solar power makes sense, and our customers clearly recognize the advantages of Solyndra systems," Solyndra’s president and CEO, Brian Harrison, said in the press release.
Read more in the Silicon Valley/San Jose Business Journal.
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