Just months removed from receiving a $400 million loan guarantee from the Obama administration, Loveland-based Abound Solar said Thursday it will file for bankruptcy, and suspend operations next week after talks with potential buyers broke down.
The company said 125 workers would be laid off. This follows a workforce reduction of 70 percent in February, when Abound let 180 full-time workers and 100 part-time employees go.
Abound received roughly $70 million from the Energy Department loan before officials froze its credit line, and is now the third company to file for bankruptcy after receiving a large loan from the Obama administration. California based Solyndra and Beacon Power, a Massachusetts energy-storage firm, declared bankruptcy last year.
Abound continues to advocate that its thin-film technology could achieve lower costs per watt of electricity than competing crystalline silicon technology made in China.
“However, aggressive pricing actions from Chinese solar panel companies have made it very difficult for an early-stage startup company like Abound to scale in current market conditions,” the company said.
Abound said it supports a recent decision by the Commerce Department imposing stiff tariffs on Chinese imports, but said, “this action is unfortunately too late for the company.”
Damien LaVera, a spokesman for the Energy Department, called Abound’s failure disappointing, but said it would not deter the Obama administration from continuing to push clean energy.