Concerns Mount at Cree Lighting Following Temporary Shutdown

On 1 October, your humble editor reported that Cree Lighting called a company-wide meeting at its Racine, Wisconsin, facility. Employees were told that, effective 11:00 a.m., all operations would pause immediately for a three-week furlough. The shutdown affected both manufacturing and office staff — a troubling signal for one of the lighting industry’s most storied brands.

An employee who spoke with EdisonReport said there was “no ambiguity” in the message — operations would cease for three weeks. However, a Cree Lighting spokesperson later said operations were expected to resume “later this month.” That subtle shift to “expected” raised questions about the certainty of the company’s return to normal operations.

Leadership Visits and Investor Concerns

Last week, EdisonReport learned of additional warning signs. Cree Lighting extended the furlough until 17 NOV:

In addition, Sabu Krishnan, CEO of Advanced Lighting Technologies (ADLT), which acquired Cree Lighting in 2023, visited Racine to meet with company leaders late last week.   Sources indicate Sabu has been seeking immediate investors because of tightening liquidity.

A few reps have since contacted EdisonReport expressing concern. They have canceled pending orders, redirected new business to other manufacturers, and voiced frustration over unpaid commissions. Even if Cree Lighting secures new funding, these reps believe it will struggle to rebuild rep confidence and restore order flow.  One rep said the only way to get any answers is to send an email to the info email address and you may receive a response in a few days.

On the bright side, we also have learned that e-conolight business is doing well and is considered the only shining star within Cree Lighting. Also, the name Cree Lighting is still quite valuable among distributors and end users.

Departures and Mounting Financial Pressure

Unconfirmed reports point to further turbulence. Multiple members of the engineering team have departed, though it remains unclear whether those exits were voluntary or part of layoffs. In addition, we are told that a key VP has reportedly left the company.

Financial strain appears to be a central factor. My bet is that Sabu was inspecting the equipment to ascertain its actual value if it were to be sold quickly.

Cree Lighting has not issued an official statement regarding the furlough extension or its financial position. For now, the combination of halted operations, frustrated reps, leadership turnover, and investor outreach underscores a period of significant instability.

Unfortunately, it is hard to see Cree Lighting recovering in a meaningful way. If they do re-open after the furlough, they will likely right-size the operation.

Developing…

Editor’s Note:  Cree Lighting is NOT related to Cree LED.