Rad Power Bikes files for bankruptcy and plans to sell the business

Electric bike company Rad Power Bikes filed for bankruptcy protection on Monday, after several weeks warned workers that they could close without new funds.

The company will continue to operate while the bankruptcy case continues, and intends to sell the business within 45-60 days, a spokesperson told TechCrunch.

“This work allows us to continue to operate in the traditional business environment while pursuing the best possible outcomes for the people who rely on Rad every day,” he said in a statement. “Our goal is to maintain the company and maintain the relationships we’ve built with our riders, vendors, suppliers, and partners.”

Rad Power is the latest in a string of electronic bike businesses around the world to go bankrupt after the hype of the pandemic has died down. Some of these companies have re-emerged, with VanMoof and Cake finding new owners during court-ordered administrations.

Rad himself had it he told the staff in November that there had been a “highly credible” process to make the company “suitable for closure,” but the deal fell apart. The company did not disclose details of the potential deal.

A few weeks later, the Consumer Product Safety Commission (CPSC) released a warning that old Rad Power batteries posed a “risk of serious injury and death” after receiving 31 reports of fires. Rad Power said it “doesn’t agree” with the CPSC’s view.

Rad’s difficult November came at the end of several difficult years for the company. It has gone through several layoffs as well they have changed CEOs earlier this yearbringing in a senior executive with years of turning around underperforming companies. The new CEO, Kathi Lentzch, said Rad is moving away from the consumer-focused brand that has fueled its growth and pursuing a more retail approach.

“The change brings new opportunities to reach more passengers, strengthen customer relationships, and transform the brand in positive ways,” he said in a statement at the time. “(I)t’s an amazing time to be on board.”

The company said it entered bankruptcy with $32 million in cash and $73 million in debt. More than $8 million in debt was owed to US Customs and Border Protection for unpaid taxes. (The company has listed this as ‘disputed’ in the bankruptcy filing.)

It is not known how much of that contributed to Rad’s demise. But it wouldn’t be the first time Donald Trump’s tariffs helped push a micromobility company over the edge. In his first term, Trump prices on Chinese foreign policy helped clear the rest of the wind electric skateboard company Boosted’s sails. Boosted moved on soon after.