Rad Power Bikes, a Seattle-based e-bike manufacturer, has informed its employees that it may shut down in January if it fails to secure new funding or an acquisition, according to an internal email viewed by TechCrunch. The company’s leadership is still exploring ways to keep Rad Power operational. Rad Power’s financial struggles have been ongoing, with the company facing significant challenges, including tariffs and a difficult macroeconomic landscape.
A spokesperson for Rad Power said the company’s leadership is focused on supporting employees, serving customers, and ensuring the company’s longevity. The e-bike industry has faced significant turmoil in recent years, with several companies going out of business or restructuring, including Cake, VanMoof, Superpedestrian, and Bird.
Rad Power Bikes’ Financial Struggles
Rad Power has faced multiple rounds of layoffs in recent years, largely due to a sudden drop in consumer demand following the pandemic. The company’s early success during the pandemic was followed by excess inventory and financial strain. According to the email, Rad Power continues to face significant financial challenges.
The company’s financial difficulties have been compounded by external factors, including tariffs and a challenging macroeconomic environment. Despite these challenges, Rad Power was considered one of the leading e-bike manufacturers, known for producing compelling products.
E-bike Industry Challenges
The e-bike industry has experienced significant disruption in recent years, with several high-profile companies facing financial difficulties. In contrast, some companies have managed to navigate these challenges and remain operational.
Rad Power’s struggles are not isolated, as the industry as a whole has faced declining consumer demand and increased competition. The company’s decision to explore strategic partnerships and potential acquisitions reflects the broader industry trend of consolidation and restructuring.
Rad Power’s Leadership Changes
In an effort to address its financial challenges, Rad Power brought in a new CEO, Kathi Lentzsch, earlier this year. Lentzsch has a track record of turning around underperforming companies. Under her leadership, Rad Power has been exploring strategic partnerships with other companies that could provide funding or acquire the business.
Last week, Rad Power issued a Worker Adjustment and Retraining Notification notice to employees at its Seattle headquarters, indicating that 64 workers could be laid off as soon as January 9. The company expects that any cessation of operations will affect all locations and departments, and will be permanent in nature. The email stated that if Rad Power is forced to close, it will cease operations on January 9, 2026, or within 14 days thereafter.
As the situation unfolds, the fate of Rad Power Bikes remains uncertain. The company’s ability to secure new funding or an acquisition will determine its future. The next few weeks will be critical in determining the outcome for Rad Power and its employees.
