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fYes, yet another "Green" business investment goes south.
Seattle e-bike pioneer Rad Power Bikes files bankruptcy
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https://www.seattletimes.com/business/local-business/seattle-e-bike-pioneer-rad-power-bikes-files-bankruptcy-owes-73-million/
Seattle e-bike pioneer Rad Power Bikes files bankruptcy, owes $73 million
Dec. 17, 2025 at 2:58 pm
Rad Power Bikes e-bikes are stored in a warehouse on April 17, 2024, in Seattle. The company filed for Chapter 11 bankruptcy protection on
Monday. (David Ryder / Bloomberg file)
Paul Roberts By Paul Roberts
Seattle Times business reporter
Seattle-based Rad Power Bikes, a pioneer in mass-market e-bikes, filed
for bankruptcy protection earlier this week as it continues to look for
a buyer amid falling sales and massive debt.
Court documents show the 18-year-old company owes nearly $73 million to
dozens of creditors, including the federal agency that collects tariffs,
but has only $32 million in assets.
The Chapter 11 bankruptcy, filed in U.S. Bankruptcy Court in Spokane,
allows Rad Power Bikes to remain in business as it reorganizes
operations and sells itself, which it hopes to do in the next two
months, the company said in an emailed statement Wednesday.
rCLOur goal is to keep the company intact and preserve the relationships
we have built with riders, vendors, suppliers, and partners,rCY the
statement read. rCLWe are not giving up.rCY
Rad Power also named its fourth CEO since 2022 rCo former Chief Financial Officer Angelina Smith.
The companyrCOs nine retail locations, including in SeattlerCOs Ballard neighborhood, are open, and its website is up.
In early November, Rad Power laid off 64 workers, including its CEO, and warned it could shut down early next year as it struggled to reverse
falling sales after expanding too aggressively during the pandemic.
Weeks later, the Consumer Product Safety Commission warned of fire
dangers linked to batteries on some Rad Power models. The company
disputed those findings.
But the bankruptcy filings offered the clear details about the scale of
the problems at a company that was once the darling of the e-bike world
and raised hundreds of millions of dollars from investors.
Founded in 2007 by Mike Radenbaugh and Ty Collins, who met at college in California, Rad Power used a direct-to-consumer model and imported
components to offer e-bikes much cheaper than competing models.
Sales surged during the pandemic, as millions of people sought
alternatives to mass transit. Investment poured in, including more than
$300 million between February 2020 and October 2021.
In 2021, the company was valued at $1.65 billion and dubbed itself the
largest e-bike seller in North America, according to GeekWire.
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But as the pandemic surge faded, Rad Power Bikes found itself
overextended and overloaded with inventory. rCLLike other companies in the traditional and e-bike industry, Rad did not anticipate the sudden drop
in consumer demand from Covid-era peaks,rCY the company noted in a letter
to employees last month.
Between 2023 and 2024, gross sales fell from $130 million to $104
million, and were just $63 million in 2025 through Dec. 15, according to
the companyrCOs bankruptcy filings.
Tellingly, the 20 largest unsecured creditors listed in MondayrCOs filings include many of Rad PowerrCOs suppliers in Asia.
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Also telling: Rad PowerrCOs largest single unsecured debt is $8.4 million which is owed to U.S. Customs and Border Protection, the federal agency
that collects tariffs on imported goods. The company disputes the claim, according to filings.
A company spokesperson declined to comment on whether that debt was
related to tariffs imposed by the Trump administration, which has taken
a tough stance on imported goods.
But in a letter to employees, the company said tariffs were contributing
to its rCLsignificant financial challenges.rCY
Rad Power was also hit by product recalls as well as lawsuits related to
a battery fire and the death of a 12-year-old rider.
In 2022, the company embarked on what appeared to be an attempted
turnaround, with layoffs and closure of its European office. Radenbaugh
handed off the role of CEO to Phil Molyneux, formerly with Dyson and
Sony Electronics.
Radenbaugh remains on the board of directors and owns 41.3% of the
company, according to filings.
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In March of this year, that turnaround got a turnaround when Rad Power
brought in yet another CEO rCo Kathi Lentzsch, who had been CEO at
now-defunct Bartell Drugs before its 2020 sale to the
soon-to-go-bankrupt Rite Aid.
Rad Power Bikes also said it was shifting its emphasis from
direct-to-consumer operations to brick-and-mortar retail. It currently
has retail outlets in Seattle and eight other North American cities.
But the company appeared unable to roll out new bike models as rapidly
as it had in its rCLheyday,rCY said Micah Toll, who writes for Electrek, an industry journal, in an email after NovemberrCOs layoffs.
In the meantime, Rad Power BikesrCO once-dominant position as the
affordable e-bike brand has been undermined by competitors.
After last monthrCOs layoffs, which included Lentzsch, Rad Power Bikes
said it had begun looking for partners that could either provide funding
or acquire the company outright, but had come up short.
On Wednesday, a Rad Power Bikes spokesperson said the company is rCLin discussions with a number of interested parties,rCY but that rCLwe donrCOt have a specific buyer at this time.rCY
Asked about possible impacts of the bankruptcy on customer service and support, the spokesperson reiterated that the Chapter 11 process
maintains operations rCLwhile we pursue the best possible outcome for the people who rely on Rad every day, including our customers with service
and support.rCY
Paul Roberts:
proberts@seattletimes.com. Paul Roberts covers business
and economics for The Seattle Times.
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