Rad Power Bikes Shutdown: What Happened?

Rad Power Bikes Faces Potential Shutdown

According to an internal email obtained by TechCrunch, Rad Power Bikes has alerted its workforce to a potential closure in January should it fail to secure additional funding or a suitable acquisition.

Company leadership remains dedicated to exploring all available options for continuation, and a complete cessation of operations is not yet definite, as stated in the communication from Rad Power’s “people team.”

A previously promising opportunity to revitalize the company reportedly fell through, despite initial positive indications. The specifics of this potential deal were not detailed within the email.

Employee Support and Transparency

Rad Power Bikes prioritizes its employees and aims to provide comprehensive support should the worst-case scenario materialize.

Leaders express hope for a resolution that allows team members to maintain employment, but acknowledge the possibility of being forced to cease operations despite ongoing efforts. GeekWire initially reported on the email’s contents.

Financial Challenges and Market Conditions

The Seattle-based company has already implemented several rounds of layoffs in recent years following the pandemic surge.

While the initial phases of the pandemic benefited micromobility businesses like Rad Power, a subsequent “sudden drop in consumer demand” resulted in excess inventory. The email also cites ongoing financial difficulties, including tariffs and the broader macroeconomic climate.

A company spokesperson affirmed that the leadership team is currently focused on employee support, customer service, and maximizing the company’s chances of long-term viability.

Industry-Wide Difficulties

Rad Power is not alone in facing challenges within the e-bike and micromobility sector. Several other companies, including Cake, VanMoof, Superpedestrian, and Bird, have either ceased operations or undergone restructuring in recent years.

Leadership Changes and Strategic Efforts

Despite the industry turbulence, Rad Power’s e-bikes have consistently been recognized as highly competitive in the market.

Earlier this year, the company appointed Kathi Lentzsch as CEO, bringing in an executive with a proven track record of revitalizing struggling businesses, in response to mounting financial pressures.

Lentzsch and the executive team have been actively pursuing “strategic partnerships” aimed at either acquiring Rad Power or securing necessary funding to ensure continued operation.

WARN Notice and Potential Layoffs

Last week, a Worker Adjustment and Retraining Notification (WARN) was issued to employees at the Seattle headquarters, indicating potential layoffs for the 64 individuals stationed there as early as January 9th.

However, this WARN notice is not a targeted layoff; it’s a procedural requirement due to the office’s size.

Potential Closure Timeline

The email states that if forced to close, operations would cease on January 9, 2026, or within 14 days thereafter.

Any cessation of operations is anticipated to be permanent, affecting all locations and departments, and resulting in the termination of all employees effective January 9, 2026.