The Boulder-based PV installer attributes its financial troubles to straying from its core of residential and small commercial projects to chase utility-scale projects. It’s a big fall. Only last year’s the company ranked #4 in Boulder County Business Report’s Mercury 100 list of fastest-growing companies in Boulder and Broomfield counties.

Updated by Staff

Simple Solar Systems LLC has filed for protection from creditors under Chapter 11 bankruptcy. The Boulder-based solar installation company took the step on May 13 and reported owing a total of about $3 million to 90 creditors, said RJ Harrington, the company’s external affairs director.

With about $1 million in assets, Simple Solar owes roughly $1.5 million to the top five creditors, according to court documents, with the top two being owed about $450,000 each. Harrington says the filing was prompted by the company straying from its core competency of  residential and small- to medium-size commercial PV installations, to instead focus on utility-scale projects for most of last year. “Now we’re getting back to our strength,” Harrington said.

He noted that while the company’s future hinges a lot on what the bankruptcy court judge rules, it hopes to emerge from bankruptcy by the end of the summer. Simple Solar has until Sept. 10 to submit its reorganization plan, but it plans to do so within the next 90 days, according to Harrington.

He said the company has been operating lean without credit and prepaying vendors in hopes of staying out of bankruptcy court. That changed two months ago after a creditor filed a lawsuit against the company which prompted the Chapter 11 move.

Last year, Simple Solar was ranked No. 4 on the Boulder County Business Report’s Mercury 100 list of fastest-growing companies in Boulder and Broomfield counties. The list was based on percent increase in revenue from 2006 to 2008 among companies reporting more than $2 million in annual revenue. Simple Solar went from revenue of $993,425 to $4.2 million over that two-year span.