Rad Power Bikes has informed its employees that it will shut down in January if it is unable to find new funding or get acquired. This information comes from an internal staff email viewed by TechCrunch.
The company’s leadership is still fighting to find ways to continue, and the cessation of operations is not a foregone conclusion. The email, sent by the people team, explained that a very promising option to keep the company alive had appeared likely to close, but the unspecified deal did not come to fruition.
The email stated that Rad is nothing without its people and wants to ensure all employees are taken care of to the fullest extent feasible. Executive leaders are hopeful a viable solution will be found to ensure team members remain gainfully employed. However, to be fully transparent, they acknowledged that despite collective efforts, the company may be forced to cease operations. GeekWire was first to report the contents of the email.
Seattle-based Rad Power has gone through multiple rounds of layoffs over the last few years following the pandemic. While the early pandemic days were a boon for micromobility companies, a sudden drop in consumer demand left the company saddled with excess inventory. The company continues to face significant financial challenges, including tariffs and the macroeconomic landscape.
A company spokesperson said that at this time, leadership is focused on supporting employees, serving customers, and giving Rad the best chance for longevity.
Rad Power is far from the only company in the e-bike or micromobility space to run into trouble recently. A number of others have gone out of business or had to restructure over the last few years.
Despite the industry turmoil, Rad Power was still considered to make some of the most compelling e-bikes on the market. Faced with escalating financial pressure, the company swapped CEOs earlier this year. It brought in an executive named Kathi Lentzsch, who has spent decades turning around underperforming companies.
Lentzsch and the other executives have spent the last few months exploring strategic partnerships with other companies that could acquire Rad Power or provide funding to keep it moving forward.
Last week, the company issued a Worker Adjustment and Retraining Notification notice to employees at its Seattle headquarters. The notice stated that the 64 people working there could be laid off as soon as January 9. According to the email, this is not a targeted layoff but is the only Rad Power office with enough workers to necessitate this kind of mandated warning.
The email clarified that in the event the company is forced to close, Rad would be required to cease operations on January 9, 2026, or within 14 days thereafter. In that case, any cessation of operations would affect all locations and departments, would be permanent, and all employees would be terminated effective that date.