PetersenDean, California-based roofing, solar, and battery company with operations in six states (Arizona, California, Florida, Nevada, Hawaii, and Texas), has filed for Chapter 11 bankruptcy protection on June 11th, 2020. The parent company, Red Rose, Inc. d/b/a Petersen-Dean and its affiliates (collectively, the “Debtors”) each filed a petition in the US Bankruptcy Court for the District of Nevada seeking relief under chapter 11 of the US Bankruptcy Code. To reorganize it’s business and debt.
PetersenDean came to solar from the roofing world and has long been a top-ten US solar installer with a multi-state regional practice. The company was the eighth-largest US residential installer in 2017 and acquired Hawaii’s Haleakala Solar in 2018.
On their website they announced that, “We are temporarily not offering quotes for Solar, Energy Storage, Fencing and HVAC at this time. Please check back in the near future as our state begins to re-open businesses to the public. We look forward to fulfilling your Solar, Energy Storage, Fencing and HVAC needs in the future. WE ARE STILL OPEN FOR YOUR ROOFING NEEDS.”
The California-based company released a statement Tuesday, June 16th citing the effects of the coronavirus pandemic as the motivation for the Chapter 11 bankruptcy claim. But even before the coronavirus, PetersenDean has seen its share of recent business challenges, according to people familiar with the firm. With an increasing number of customer complaints, and issues homeowners have had to get service for any issues, PetersenDean exhibited flashes of challenges. 2020 was supposed to mark a particular advantage for PetersenDean with the new regulation around requiring new homes in California and Accessory Dwelling Units (Title 24’s Impact on ADUs) to come with solar installed. Now they are joining a list of solar companies who are no longer able to support their customers like American Solar Direct, Enver Solar, Sungevity, and Verengo Solar.
PetersonDean, as one of the leading solar companies in the US, had secured financing and supply partnerships with national solar companies like Sunnova, Enphase, and SunPower to take advantage of the new solar regulations. Although PetersenDean’s business will continue to function as it goes through its corporate restructuring, their future partnership structure and relationship is unknown. PetersenDean highly touts its partnership with Enphase to deliver world-class solar and storage solutions for new homes. Their partnership to provide Enphase solar microinverters, battery storage, and energy management could be in jeopardy since they are not currently taking on new customers.
In a filing with the United States Bankruptcy Court for the District of Nevada, Red Rose Inc, dba PetersenDean estimated its assets sat between $10 million and $50 million, with estimated liabilities in the same range of $10 million to $50 million. In a listing of the company’s largest creditors, PetersenDean listed outstanding debts that spanned up to more than $21 million owed to a roofing supply company based in Wisconsin. There is speculation that this roofing supply company is ABC Supply, one of the largest roofing supply companies in the United States. PetersenDean has between 200 and 999 creditors, according to the court filing and will need to restructure its balance sheet to lower their debt levels in order to reemerge as a working, sustainable business.
By going through Chapter 11, any workmanship warranties provided by Red Rose Inc, dba PetersenDean may be void. What are your next options? If PetersenDean is no longer in business, but has used high-quality components, then it is likely that the manufacturer’s warranty will cover the cost for new parts if you’re still under warranty. However, in most cases, labor is not covered. You will have to get another solar company to replace the malfunctioning components. Unfortunately, you will be responsible for the cost of the labor to repair and swap out the old broken solar components. If you are in need of solar repair services for your existing system, give Forme Solar a call. We have helped hundreds of customers whose solar companies are no longer in business get their system up and running.