Rad Power Bikes, which once claimed to be the most funded electric bike company in the world, filed for Chapter 11 bankruptcy protection on Monday as it seeks to sell off the company.
The bankruptcy, first reported by Bicycle Retailer, was filed in the US Bankruptcy Court for the Eastern District of Washington, and lists estimated assets at $32.1m and estimated liabilities at $72.8m. The inventory of electric bike spares, parts and accessories is listed at $14,226,874.73, according to Bicycle Retailer.
It’s been a dramatic few years for the electric bike brand. Founded by Mike Radenbaugh in 2007, Rad Power raised $154m through a financing round in 2021 that brought the total investment amount to $329m.
But in 2023, it pulled out of the European market in order to try to sustain its business and success in the USA, where the company began. The company has also dealt with personal liability lawsuits, layoffs and management changes.
The filing comes less than a month after Rad Power said it could not afford to recall its older ebike batteries, deemed a fire risk by the US Consumer Product Safety Commission. Rad Power disputed the CPSC’s warning, stating its batteries are safe.
In early November, Rad Power told Washington state officials that it would possibly lay off 64 employees in January and could shut down if additional funding is not secured.
A Rad Power spokesperson told Bicycle Retailer: “Rad Power Bikes has navigated an extraordinary period of challenge and change, even as our riders and community have continued to show up for us in powerful ways.
“As we work to secure a sustainable future for the Rad brand, Rad has filed for Chapter 11 protection as part of a process to complete a sale of the company within the next 45-60 days.
“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. Our goal is to keep the company intact and preserve the relationships we have built with riders, vendors, suppliers, and partners.
“We are not giving up. We remain deeply committed to our customers and community, and we are focused on doing everything we can to strengthen the future of the Rad brand. We are grateful for the continued support of our riders, vendors, and retail partners as we work through this moment and toward what comes next.”
