Solar Company That Received $400 Million Taxpayer Loan Lays Off Large Percentage of Work Force

By Doug Powers  •  March 1, 2012 08:46 AM

**Written by Doug Powers

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Every few days now there are stories like this, and I always have to double check to make sure it’s not a repeat of previous stories we’ve already discussed. Unfortunately, they don’t usually turn out to be reruns.

From the Denver Post:

Longmont-based Abound Solar, recipient of a $400 million federal loan guarantee to expand solar panel production, said Tuesday it is laying off 280 workers and delaying a new factory in Indiana.

The layoffs represent 180 full-time workers and, according to the Longmont Times-Call, an additional 100 part-time employees. That is about a 70 percent reduction of Abound’s Colorado workforce.

“We are facing tough market conditions and falling prices” said Steve Abely, Abound’s chief financial officer.

Abound will take six to nine months to install new equipment and develop a solar panel that will be 20 percent more efficient and more cost competitive, the company said.

“Hopefully by then the market will recover,” Abely said.

According to the company, the Department of Energy continues to be supportive. Only people spending somebody else’s millions could maintain an excitement level about a business recovery plan with the word “hopefully” in it.

Flashback to 2010:

In his weekly radio address to the nation Saturday, Obama said Abound “will manufacture advanced solar panels at two new plants, creating more than 2,000 construction jobs and 1,500 permanent jobs.

(h/t Weasel Zippers and Tina Korbe)

**Written by Doug Powers

Twitter @ThePowersThatBe

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Comments


  1. #1
    On March 1st, 2012 at 8:52 am, Teddy Kennedy said:

    Errah, So are those 70% subtracted from the saved and or created tally?

  2. #2
    On March 1st, 2012 at 8:54 am, Teddy Kennedy said:

    Errah, Can someone please tell me how much $ from any of these failed energy ventures ended back up in DNC coffers? Inquiring minds want to know!

  3. #3
    On March 1st, 2012 at 8:55 am, stillontheroad said:

    How much of that money was kicked bak to the Obama coffers? Hopefully more watchful eyes are monitoring where all this money goes.
    All Democrats also vote against bill to release water to the Central California farmers to growe food that we are now importing from China because the Sock Puoppet regime and the filthy Democrat lapdogs that lick his shoes want to look good to the Watermelons. It passed the House, lets see what happens in the Senate – Sock Puppet has already vowed to Veto it.

  4. #4
    On March 1st, 2012 at 8:58 am, dan708 said:

    If the RNC had any brains at all, they’d be producing a half-hour infomercial full of these O-bungles! It should be like shooting fish in a barrel, but the RNC’s barrel is full of holes.

  5. #5
    On March 1st, 2012 at 9:02 am, AJsDaddie said:

    Is there a list of these yet?

    I think a great election ad would be a nice table of the companies, the money spent, the jobs that would be added, and then the actual results.

    Additional columns to include but not be limited to: bonuses for executives and donations to DNC.

  6. #6
    On March 1st, 2012 at 9:04 am, Dexter Alarius said:

    Can we cut out the middle-man and just have money from the mint go directly into an incinerator?
    Aaaaaaaaaargh!

  7. #7
    On March 1st, 2012 at 9:11 am, jsr said:

    “We are facing tough market conditions and falling prices”

    I thought bringing prices down was the the goal of all these investments in “green” energy. I suppose the solution will be the govt. stepping in with more tax incentives and subsidies. Maybe even price supports are required to keep the manufacturers in business.

    What a freakin mess. This is what happens when you have the Smartest People In The World micromanaging things for our own good.

  8. #8
    On March 1st, 2012 at 9:14 am, Rogue Cheddar said:

    Unexpectedly!

    “Hopefully by then the market will recover,” Abely said.

    Maybe if you did a ‘Rain’ dance or sacrificed a chicken! Have you tried that?

  9. #9
    On March 1st, 2012 at 9:16 am, Rogue Cheddar said:

    Longmont-based Abound Solar, recipient of a $400 million federal loan guarantee to expand solar panel production, said Tuesday it is laying off 280 workers and delaying a new factory in Indiana.

    Where’s my money?!

  10. #10
    On March 1st, 2012 at 9:23 am, Rogue Cheddar said:

    You know, these companies have received 400 – 800 million a piece, and in less than a year’s time, they’re all practically belly-up. Where did all the money go? Who is doing their books, Arthur Anderson?!

  11. #11
    On March 1st, 2012 at 9:24 am, Paratus said:

    Nanny Franny did say that unemployment is great for the economy or some such non sense. So this is a great idea.

    I can see an interview of an employee that lost their job at Abound Solar: I lost my job and I’m on unemployement I’m helping the economy, I’m going to Disneyworld!

  12. #12
    On March 1st, 2012 at 9:27 am, CO_Engineer said:

    Oh Yay! Another Colorado green company going bust and adding to the unemployement rolls. Our Dem Gov (Flickenpooper) keeps babbling about how Colorado will be on the leading edge of the country in alternate energy- while we sit on huge reserves of real energy that we can’t utilize. I think he actually meant we would lead the rest of the lemmings off the cliff. Nobody in this administration could possibly beleive the BS they are shoveling- this is purely a money laundering operation.

  13. #13
    On March 1st, 2012 at 9:30 am, marco said:

    Not to worry about job losses!! Openings will be available to corrupt Democrat donors at ALGAELYNDRA, the new green substitute for fossil fuels which they are bankrupting!! Believe ALGAESQUARED is hiring to manufacture green pills to replace the American food supply and is part of Obamacare!! Algae also has potential as birth control pills!!
    Eat a few and one will be too ill to ever have sex again!!Obama rocks!! Five more years!! Ha!!

  14. #14
    On March 1st, 2012 at 9:32 am, Teddy Kennedy said:

    Errah, I would suspect that the money never even made it outside the beltway . . . .

  15. #15
    On March 1st, 2012 at 9:37 am, Flyoverman said:

    On March 1st, 2012 at 9:32 am, Teddy Kennedy said:

    Errah, I would suspect that the money never even made it outside the beltway . . . .

    Teddy, You are just bitter the money did not go to the wind farm off of Hyannis Port.

  16. #16
    On March 1st, 2012 at 9:52 am, prendad said:

    Oh another day, another Obama-funded pet solar project going down in flames along with 100′s of millions of dollars and hundreds more people out of work and jobs L O S T.

    In the immortal words of an old Navy Captain I used to work for:
    “Never in my f*****g wildest drunken dreams could I have screwed things up worse.

  17. #17
    On March 1st, 2012 at 9:59 am, peteee said:

    will you make your job easy, by listing only the companies supported by obama that didn’t layoff workers?

  18. #18
    On March 1st, 2012 at 10:03 am, old goat said:

    Slightly OT but a neighbor told us last night about how Obama has almost destroyed the “green” energy business. Neighbor was VERY involved (to the tune of LARGE amounts of money)in wind energy advances.

    When Obama came in he started throwing millions to the most poorly run companies which put the ones who were doing well in the hole. Only those who supported Obama with money have been allowed to “survive”. Of course they are failing now but in the process they took out many of the ones who were doing a great job.

    Obama has destroyed the green energy business–par for course.

  19. #19
    On March 1st, 2012 at 10:05 am, Republicanvet said:

    I suspect much of the planned market (purchases by government agencies using more tax dollars) never materialized at the rate these buffoons were pumping them out.

  20. #20
    On March 1st, 2012 at 10:07 am, J S Ragman said:

    The layoffs represent 180 full-time workers and, according to the Longmont Times-Call, an additional 100 part-time employees.

    I hope they didn’t lay off any upper level executives, or else who would be there to collect their bonuses?

  21. #21
    On March 1st, 2012 at 10:09 am, Republicanvet said:

    On March 01, 2012 at 07:23 am, Rogue Cheddar said:

    You know, these companies have received 400 – 800 million a piece, and in less than a year’s time, they’re all practically belly-up. Where did all the money go? Who is doing their books, Arthur Anderson?!

    Jethro Clampett.

  22. #22
    On March 1st, 2012 at 10:26 am, Rogue Cheddar said:

    Milburne Drysdale: I’m president of a bank.
    Jethro: Wow, can I be president of a bank too?
    Jed Clampett: Jethro that was a mighty disrespectful thing to say to Mr. Drysdale. Ask if you can be vice president.

  23. #23
    On March 1st, 2012 at 10:35 am, hawkeye54 said:

    Can someone please tell me how much $ from any of these failed energy ventures ended back up in DNC coffers? Inquiring minds want to know!

    You’ll probably never find any record of what ended up with the DNC. No doubt, all contributions were sent in cash in brown paper bags, old bills, non-sequential serial numbers.

  24. #24
    On March 1st, 2012 at 10:36 am, hawkeye54 said:

    You know, these companies have received 400 – 800 million a piece, and in less than a year’s time, they’re all practically belly-up. Where did all the money go? Who is doing their books, Arthur Anderson?!
    Jethro Clampett.

    Leo Bloom.

  25. #25
    On March 1st, 2012 at 10:41 am, thefoundingfathers said:

    Somewhere a number of people are grinning knowing this money has been safely tucked away in their bank accounts and all they needed was to give some of it to Obama and the DNC.

  26. #26
    On March 1st, 2012 at 10:53 am, peteee said:

    Republicanvet said:

    On March 01, 2012 at 07:23 am, Rogue Cheddar said:

    You know, these companies have received 400 – 800 million a piece, and in less than a year’s time, they’re all practically belly-up. Where did all the money go? Who is doing their books, Arthur Anderson?!

    Jethro Clampett.

    turbo tax timmy?

  27. #27
    On March 1st, 2012 at 11:10 am, swede said:

    Can someone please tell me how much $ from any of these failed energy ventures ended back up in DNC coffers? Inquiring minds want to know!

    Whatever was left after management skimmed off the top.

    Probably +/- $.38

  28. #28
    On March 1st, 2012 at 11:11 am, Ron said:

    Can there be any doubt that the solar industry just aint ready for prime time?

  29. #29
    On March 1st, 2012 at 11:33 am, Sean100 said:

    With all these solar panel companies going belly up, I can only wonder how the multi acre solar panel array, being built in oh so sunny Michigan is coming along ? You know, the one that is being built to off set the energy costs of operating the Chevy Volt plant.

  30. #30
    On March 1st, 2012 at 11:49 am, Gorebot said:

    OBlowMe’s administration humiliates the USA every single day.

    Asian nations simply laugh at the self-destruction we allow.

    Beyond disgusting.

  31. #31
    On March 1st, 2012 at 11:49 am, davebrown said:

    All this reminds me of a “management training” session I was in many years ago, where the question was dealing with budget problems and where would you cut costs. Most of us talked about cutting secretarial, janitorial, and other lower-level positions. Of course, the correct answer was “You cut from the top.They make the most money. You need the base jobs to make the business work.”

  32. #32
    On March 1st, 2012 at 11:51 am, AlohaGuy said:

    Ron said:

    Can there be any doubt that the solar industry just aint ready for prime time?

    Their biggest problem? They haven’t learned how to kill Eagles like the wind farm guys do. Thankfully, no snail darters are harmed by “green” energy.

    BTW, I wish Obama would get serious about throwing my money away. A few hundred million here, a few hundred million there – common mom-jeans, throw a billion on the White House lawn and torch it.

  33. #33
    On March 1st, 2012 at 11:53 am, dan708 said:

    On March 1st, 2012 at 10:53 am, peteee said:

    Republicanvet said:

    On March 01, 2012 at 07:23 am, Rogue Cheddar said:

    You know, these companies have received 400 – 800 million a piece, and in less than a year’s time, they’re all practically belly-up. Where did all the money go? Who is doing their books, Arthur Anderson?!

    Jethro Clampett.

    turbo tax timmy?

    Franklin Raines?

  34. #34
    On March 1st, 2012 at 12:06 pm, hawkeye54 said:

    I wish Obama would get serious about throwing my money away

    Ya know, he’s been serious about that all along. He knows where its really going, cause he gets a nice piece of all that action himself.

  35. #35
    On March 1st, 2012 at 12:28 pm, Pasadena Phil said:

    Abound Solar is fully owned by KeyCorp (bank). One of the first and largest investors was billionaire Obama crony Pat Styker via Bohemian. She has donated hundreds of thousands to Democrats only including $87,000 to Obama’s Inauguration Committee and another $500,000 to the Coalition for Progress. We need to find the payoff.

    There is always a payoff. That is the whole point of investing in these lousy companies. The Strykers and Kaisers cash out once the taxpayer money arrives temporarily legitimizing the companies, usually an IPO.

  36. #36
    On March 1st, 2012 at 12:35 pm, happyscrapper said:

    Interesting that Obama seems to be the “kiss of death link” to these problems. He shows up, makes a great speech about how wonderful the company is, then it goes belly up. Where will he strike next? A true “Typhoid Mary”. Every thing this guy touches DIES!! I pray we won’t be saying that about our great country!!

  37. #37
    On March 1st, 2012 at 12:41 pm, AlohaGuy said:

    A true “Typhoid Mary”. Every thing this guy touches DIES!!

    See Phil’s comment right above yours. Phony companies that will eventually collapse after taking your tax money is the plan, not an unfortunate circumstance.

  38. #38
    On March 1st, 2012 at 12:54 pm, tomg51 said:

    “Hopefully”?

    How about returning the money you have left and calling it quits today?

    Do you really need to waste all of it before you give up?

  39. #39
    On March 1st, 2012 at 12:56 pm, rambler said:

    Gov investment,aka money laundering!

  40. #40
    On March 1st, 2012 at 12:57 pm, txvet2 said:

    Then there is this gem:

    Abound will take six to nine months to install new equipment and develop a solar panel that will be 20 percent more efficient and more cost competitive, the company said.

    As if there weren’t a thousand other companies trying to do the same thing. These businesses are the 21st Century equivalent of internet startups going public with no revenue stream and no products.

  41. #41
    On March 1st, 2012 at 1:08 pm, rambler said:

    This continues to be proof positive that politicians have no business handling money they didn’t earn. A thief never learns to handle money wisely, instead he steals more.

  42. #42
    On March 1st, 2012 at 1:10 pm, Pasadena Phil said:

    BTW, market darling First Solar has benefited greatly from over $4.7 BILLION of taxpayer loans and grants. First Solar is a major Goldman Sachs investment where their biggest boosters Michael Heller and Bruce Heyman are members of Obama’s National Finance Committee and contributed over $130,000 to that committee.

    Is there a single solar or wind investment that is not founded/fueled by corrupt money?

  43. #43
    On March 1st, 2012 at 1:30 pm, hawkeye54 said:

    Phony companies that will eventually collapse after taking your tax money is the plan, not an unfortunate circumstance.

    With the top executives and certain politicians laughing behind closed doors at all the way to the bank!

  44. #44
    On March 1st, 2012 at 1:42 pm, hawkeye54 said:

    Is there a single solar or wind investment that is not founded/fueled by corrupt money?

    Nope. If they were profitable, private investors would be clamoring to get in without the need for any government assistance. Without government subsidies, and corruption for nothing more than corporate cronyism with self-serving politicians, renewable energy sources are economic duds:

    NEWSWEEK, Nov 29, 2011 – One of the ugly secrets of the renewable-energy industry is that its products make no economic sense unless they are highly subsidized.

  45. #45
    On March 1st, 2012 at 1:49 pm, AlohaGuy said:

    Is there a single solar or wind investment that is not founded/fueled by corrupt money?

    Solyndra – no
    Abound – no
    Solar Reserve – no
    Granite – no

    AlohaGuy’s Secret Solar that This Time Will Actually Work, No Really – where’s my loan?

  46. #46
    On March 1st, 2012 at 2:01 pm, happyscrapper said:

    What kinds of offices are these people building for the “start-up” companies? Solyndra was an architectural marvel. What about the other companies? Did they spend all OUR money on overhead? Looks like it. Another example for government waste! They DO NOT CARE since it is NOT THEIR MONEY! When will these morons grasp that??? I know…never. I truly believe that the gene pool of regressives has phased out brain matter and replaced it with huge vacuum, only to be filled with vitriolic mush.

  47. #47
    On March 1st, 2012 at 2:03 pm, stuckinIL4now said:

    Time to lay off Oblunder and 100 percent of his lazy corrupt nonworking force.

  48. #48
    On March 1st, 2012 at 2:09 pm, FirstSkirt said:

    Geez…this guy, Obama, is a walking disaster zone. Here’s something interesting about the Chinese and the solar industry:

    http://spectator.org/archives/2011/12/22/obamas-solar-smoot-hawley

  49. #49
    On March 1st, 2012 at 2:19 pm, Pasadena Phil said:

    On March 1st, 2012 at 1:49 pm, AlohaGuy said:

    AlohaGuy’s Secret Solar that This Time Will Actually Work, No Really – where’s my loan?

    You need to adopt the T. Boone Pickens strategy. He invested tons of money in wind power which will never pay off so now he has wrapped that into his plans for natural gas (which doesn’t need taxpayer subsidies) as the justification for big taxpayer subsidies. I suggest:

    AlohaGuy’s Secret Solar and Tsunami .com Green Alternative Power Solutions.

    You have to strike while the iron is hot. These scams have a limited shelf life.

  50. #50
    On March 1st, 2012 at 2:32 pm, Rogue Cheddar said:

    You have to strike while the iron is hot. These scams have a limited shelf life.

    I don’t know, seems like they’ve been around forever. Same old pyamid scheme.

  51. #51
    On March 1st, 2012 at 2:38 pm, hawkeye54 said:

    You have to strike while the iron is hot. These scams have a limited shelf life.
    I don’t know, seems like they’ve been around forever. Same old pyamid scheme.

    While these schemes have been around forever, the current crop of schemers, themselves, just may have a limited window of opportunity here, I hope.

  52. #52
    On March 1st, 2012 at 2:38 pm, Collateral Damage said:

    Just more proof, as if we needed any, as to the abject incompetance of this entire administration!?! Hey (R)s, are you listening???

  53. #53
    On March 1st, 2012 at 2:46 pm, Pasadena Phil said:

    On March 1st, 2012 at 2:38 pm, Collateral Damage said:

    Just more proof, as if we needed any, as to the abject incompetance of this entire administration!?! Hey (R)s, are you listening???

    Want some examples of Republican crooks doing the same thing? People like John Boehner? “There but for the grace of God go I”.

    This isn’t an Obama or Democrat problem. It’s an entrenched and corrupt one-party government problem.

  54. #54
    On March 1st, 2012 at 2:49 pm, Pasadena Phil said:

    Many of these crony scams are funded by earmarks. What does it tell you that Eric Cantor was the guy who put the kibosh on the House bill to ban earmarks?

  55. #55
    On March 1st, 2012 at 2:56 pm, hawkeye54 said:

    This isn’t an Obama or Democrat problem. It’s an entrenched and corrupt one-party government problem.

    Those entrenched have morphed into “Demogops”.

  56. #56
    On March 1st, 2012 at 3:04 pm, Hiraghm said:
  57. #57
    On March 1st, 2012 at 3:27 pm, Dexter Alarius said:

    OT, and I don’t want to disrupt the solemnity of the Breitbart thread.

    Go, go, go Sheriff Joe!
    Here’s a tidbit not previously known:

    Records of Immigration and Naturalization Service cards filled out by airplane passengers arriving on international flights originating outside the United States in the month of August 1961, examined at the National Archives in Washington, D.C., are missing records for the week of President Obama’s birth, including the dates Aug. 1, 1961 through Aug. 7, 1961.

    Sheriff Joe is breitbarting all those people covering up for Obama’s ineligibility.

  58. #58
    On March 1st, 2012 at 3:31 pm, AlohaGuy said:

    AlohaGuy’s Secret Solar and Tsunami .com Green Alternative Power Solutions.

    I like it. Maybe I’ll call it Tsunami Solar. That makes no sense which should bump it up the loan ladder. I need to put in a call to Dan Inouye, and tomorrow I’ll be rich. Hopefully I’m only 6-9 months away from tsunami powered solar cells.

  59. #59
    On March 1st, 2012 at 3:39 pm, hawkeye54 said:

    I need to put in a call to Dan Inouye, and tomorrow I’ll be rich. Hopefully I’m only 6-9 months away from tsunami powered solar cells.

    Hmmm, I think that phone call will only be the beginning of the process. I’m certain there must be an unwritten ratio of what you are expected to contribute to Dan’s re-lection campaign to what sum will be granted to your solar cell project.

    Get your check book ready, er, make that a pre-determined amount of unmarked, untraceable,old C-Notes, random serial numbers, dropped off at his campaign HQ, first thing tomorrow if you expect his immediate attention to your matter. He’s promised to get right on it, soon as the amount has been confirmed and deposited.

  60. #60
    On March 1st, 2012 at 3:40 pm, T-Bone said:

    Come on. This is not Obamas fault. It is Bushes fault. Bush made the economy so bad that these green companies can not get off the ground. People don’t have money to spend on green products because Bush ruined the economy and drove us off the cliff.

    And Bush did it all by himself. Obama was in the Senate at the time but could do nothing to stop the evil Bush because the Democrats only controlled both houses of Congress the last two years of Bushs term.

    Democrats are not to blame for this mess. They would have fixed everything by now but the Tea Party and the Arab spring and the gulf disaster and the (insert excuse here). If Obama could have 12 more years, he could fix all this mess and bring unemployment below 10% with free healthcare, free college for everyone, a chicken in every pot, and 40 acres with a donkey.

    We could all live in the same size house with the same size car and have the same household budget. No more having to keep up with the Jones’s. We could all have the same work hours and wouldn’t have to put up with any evil managers trying to tell us what to do or making us work weekends.

    In fact, Bush made everything so bad that we are lucky that Obama came when he did because his policies have created and saved so many jobs and stopped the Bush death spiral. I can’t even imagine how bad it would be if Obama had not turned it around and kept us from descending further into the abyss. Obama even saved this blog because of his greatness.

    If only the Dems could control both houses of Congress and the White House, then things could get better. Oh wait, that already happened. My thinking must be warped from watching too much CNN.

    Never mind.

  61. #61
    On March 1st, 2012 at 3:55 pm, roadrage said:

    I just hope I live to see Obama and all of his cronies doing the perp walk in orange jumpsuits.

  62. #62
    On March 1st, 2012 at 5:05 pm, FirstSkirt said:

    Me too, roadrage @#61, but we better not hold our breaths…too much corruption, not just in DC.

  63. #63
    On March 1st, 2012 at 5:06 pm, sb36695 said:

    Inquiring minds want to know “Who was paid off with this ‘loan’?”!

  64. #64
    On March 1st, 2012 at 5:27 pm, hawkeye54 said:

    I just hope I live to see Obama and all of his cronies doing the perp walk in orange jumpsuits.

    As do I. Thanks to his admins regs this, just in at HOT AIR:

    GenOn Energy Inc. plans to close five of its older coal-fired power plants in Pennsylvania over the next four years.

    The company, based in Houston, said Wednesday that tough new environmental rules make it unprofitable to operate the plants, which generate a total of 3,140 megawatts of electricity.

  65. #65
    On March 1st, 2012 at 5:40 pm, squeeze127 said:

    On March 1st, 2012 at 8:58 am, dan708 said:
    If the RNC had any brains at all, they’d be producing a half-hour infomercial full of these O-bungles! It should be like shooting fish in a barrel, but the RNC’s barrel is full of holes.

    I’ve come to the conclusion that the “R’s” are just as guilty as the “D’s”, just not on as grand of scale. The Lobbyist is where the focus should be. We “elect the pols” and the lobby controls them with all their money. When these idiots get voted out of office, they get to be full time lobbyists. Sound like a “Catch 22???”

  66. #66
    On March 1st, 2012 at 7:09 pm, letget said:

    O/T, it seems mo’s gotta eat celery had bho saying you need to eat some sugar? The laughs a minute with bho?

    http://nation.foxnews.com/president-obama/2012/03/01/watch-folks-faint-obama-event-you-gotta-keep-your-blood-sugar
    L

  67. #67
    On March 3rd, 2012 at 4:07 pm, X-Navy-SWO said:

    On March 1st, 2012 at 9:23 am, Rogue Cheddar said:

    Who is doing their books, Arthur Anderson?!

    Actually, it appears to be Pamela Anderson.

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