Rad Power Bikes Could Shut Down in January Without Funding
▼ Summary
– Rad Power Bikes may shut down in January 2026 if it fails to secure new funding or get acquired, according to an internal email.
– The company faced a sudden drop in consumer demand after the pandemic, leaving it with excess inventory and financial challenges from tariffs and the macroeconomic landscape.
– Rad Power has undergone multiple layoffs and recently issued a WARN notice for its Seattle headquarters, potentially affecting 64 employees starting January 9, 2026.
– The company’s leadership is actively seeking strategic partnerships or acquisitions to avoid closure and ensure employee job security.
– Rad Power is part of broader industry struggles, with other e-bike and micromobility companies like VanMoof and Bird also facing business failures or restructuring.
Rad Power Bikes, a prominent name in the electric bicycle industry, has warned its workforce that it may permanently close its doors in January unless it secures new financial backing or finds a buyer. An internal company email obtained by TechCrunch reveals that leadership is actively exploring every possible avenue to avoid a shutdown, though the outcome remains uncertain. The message from the company’s people team stressed that while a promising deal to rescue the business recently fell through, executives have not given up hope.
The email acknowledged the critical role employees play, stating the company wants to take care of its team to the fullest extent possible. Leadership expressed optimism about finding a solution to keep staff employed, but also delivered a sobering dose of reality. They admitted that, despite their best efforts, the company might be forced to cease all operations. GeekWire was the first to report on the email’s contents.
Based in Seattle, Rad Power Bikes has conducted several rounds of layoffs in the post-pandemic period. The early days of the health crisis provided a major boost to micromobility firms, but a sudden and sharp decline in consumer demand left the company struggling with a surplus of unsold inventory. The internal communication pointed to significant financial challenges, including the impact of tariffs and a difficult macroeconomic environment, as ongoing pressures.
A company spokesperson confirmed that the current focus for Rad’s leaders is on supporting employees, serving their customer base of “Rad Riders,” and doing everything possible to ensure the company’s long-term survival.
Rad Power is not alone in its struggles. The broader e-bike and micromobility sector has seen considerable instability, with several other companies like Cake, VanMoof, Superpedestrian, and Bird either going out of business or undergoing major restructuring in recent years.
Even amid this industry-wide turmoil, Rad Power maintained a reputation for producing some of the market’s most appealing and well-regarded e-bikes. To navigate its escalating financial woes, the company appointed a new CEO earlier this year. They brought on Kathi Lentzsch, an executive with a decades-long track record of revitalizing underperforming companies.
For the past several months, Lentzsch and the rest of the executive team have been pursuing strategic partnerships. Their goal has been to find another company willing to either acquire Rad Power or inject the necessary capital to keep it afloat.
The situation escalated last week when the company filed a Worker Adjustment and Retraining Notification (WARN) with employees at its Seattle headquarters. This notice informed the 64 staff members at that location that they could face layoffs as early as January 9. The email clarified that this is not a targeted reduction at the headquarters, but rather the only company office with a large enough workforce to legally require such a warning.
The internal message laid out the potential timeline for a complete closure. Should the company be forced to shut down, it would be required to cease operations on or around January 9, 2026. In that scenario, the shutdown would be permanent, impacting every location and department, and resulting in the termination of all employees.
(Source: TechCrunch)
