Rad Power Bikes Files for Bankruptcy and Seeks to Sell the Business

Electric bike company Rad Power Bikes filed for Chapter 11 bankruptcy protection on Monday, weeks after warning its employees that the company could shut down without new funding.

While the bankruptcy process is underway, Rad Power Bikes will continue to operate and is looking to sell the business within 45 to 60 days, according to a spokesperson who spoke with TechCrunch.

“This step allows us to keep operating in the ordinary course of business while we pursue the best possible outcome for the people who rely on Rad every day,” the spokesperson said in a statement. “Our goal is to keep the company intact and preserve the relationships we have built with riders, vendors, suppliers, and partners.”

Rad Power is the latest electric bike company to file for bankruptcy as the post-pandemic e-bike boom fades. Some of these companies, such as VanMoof and Cake, have been acquired by new owners through court-led restructurings.

Earlier this year, Rad Power had told employees that a “very promising” option to keep the company afloat was “likely to close,” but that deal ultimately fell through. The company has not shared further details about the potential deal.

In addition to the financial woes, the Consumer Product Safety Commission (CPSC) issued a warning in November that older Rad Power bike batteries posed “a risk of serious injury and death” after receiving 31 reports of fires. Rad Power disagreed with the CPSC’s characterisation of the batteries.

The bankruptcy follows a rough few years for Rad Power. The company has undergone several rounds of layoffs and replaced its CEO earlier this year, bringing in Kathi Lentzsch, an executive with decades of experience in turning around struggling companies. Lentzsch stated that Rad Power was shifting its focus from a direct-to-consumer model to a retail-focused approach, creating new opportunities to reach more riders and strengthen customer relationships.

Rad entered bankruptcy with $32 million in assets and $73 million in liabilities. More than $8 million of its debt is owed to U.S. Customs and Border Protection for unpaid tariffs. However, the company has listed this debt as “disputed” in its bankruptcy filing.

It’s unclear how much the unpaid tariffs contributed to Rad Power’s financial troubles, but the impact of tariffs during the Trump administration was felt across the micromobility industry. In the case of the electric skateboard company Boosted, Trump’s tariffs on Chinese imports were cited as a factor contributing to its eventual shutdown.