Rad Power Bikes faces possible shutdown as it tries to survive ‘significant financial challenges’

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Seattle-based electric-bike manufacturer Rad power bikeWhat has become North America’s leading e-bike seller during the pandemic is struggling to survive as it faces “significant financial challenges”, the company confirmed on Monday.

Rad filed a Workforce Adjustment and Retraining Notice (WARN) with the Washington State Department of Employment Security on Friday. A spokesperson for the company told GeekWire that the filing is “part of advance written “Rad Power Bikes” notice of a possible cessation of operations that could occur as early as January 2026.”

The closing spells the end of the company and Rad Power Bikes, once Seattle’s highest-profile consumer hardware startup, would mark a stunning decline for pandemic-era e-bike demand riding unicorn status.

Rad Power Bikes

A shutdown would affect 64 jobs at Rad’s headquarters location in Seattle’s Ballard neighborhood, according to the WARN filing. Positions affected include company CEOs, CFOs, multiple manager-level roles, customer service representatives and bike mechanics. Rad also operates retail locations in nine cities in the United States and Canada.

“No final decision has been made, and these notices are precautionary,” a Rad spokeswoman said. “Rad’s leadership is actively pursuing all viable options to keep the company operating.”

Those options include funding to move the company forward or acquiring Rad, which has raised more than $329 million to date. A “very promising deal” was close to completion and likely closed, but “did not come to fruition.”

In a letter to employees (below), the company said it “did not anticipate a sudden drop in consumer demand from the Covid-era peak” and that it was “Rad Power Bikes” also facing challenges “in the form of tariffs and the macroeconomic landscape”.

According to the letter, a collective mantra has emerged at the company: “Save Rad.” For years, the favorite slogan was “Ride Rad.”

The company is still selling bikes on its website and promoting deals for Black Friday.

Filings with the state are in compliance with Washington Mini-Warn ActThat went into effect July 27, and “requires employers with 50 or more full-time employees “Rad Power Bikes” in the state to provide 60 days’ advance written notice of mass layoffs or business closings affecting 50 or more employees.”

Ty Collins, left, and Mike Radenbaugh, co-founders of Rad Power Bikes. (GeekWire File Photo/Kurt Schlosser)

Rad was conceived in 2007 by co-founders Mike Radenbaugh and Ty Collins, who met as students at Humboldt State University in Northern California and built their first e-bike together. After custom converting traditional bikes into electric bikes, they launched their company in 2015 as a direct-to-consumer brand.

Rad saw great demand amid the pandemicAs more people buy e-bikes. Its sales and workforce have grown, and it has raised more than $300 million “Rad Power Bikes” from investors in 2021. The company was valued at $1.65 billion, according to Pitchbook, making it one of a handful of “unicorn” startups in the Seattle area at the time.

Rad operates out of a headquarters and flagship retail location on NW 52nd Street in Seattle’s Ballard neighborhood.

The company is currently headed by the Chief Executive OfficerKathi Lentschwho ran Bartel Drugs as CEO before the company was sold to Rite-Aid in 2020. He has also led companies including Gumps and Elephant Pharmacy and held executive roles at Enesco, Pottery Barn and World Market.

Replaced LentzschPhil MolyneuxThe former Sony president who stepped down earlier this year after leading Rad for more than two years.

Seattle entrepreneurs Darrell CavensAndMark Vadonwho helped grow online retail giants Blue Nile and Zulily, invested in Rad in 2019.

The company, led by Vulcan Capital and Durable Capital Partners LP, raised $25 million in 2020, and when the pandemic took hold in May of that year, Rad saw a 297% increase in demand due to rapid changes in consumer transportation and exercise habits.

With the global electric bike market exploding, Rad took another $150 million in 2021 from big-name investors such as Counterpoint Global (Morgan Stanley), Fidelity Management and Research Company, The Rise Fund, Global Impact “Rad Power Bikes” Investing Platform managed by TPG, and funds and accounts advised by T. Rowe Price Associates.

Later that year, as ridership increased, Rad collected another $154 million.

In April 2022, the company began a series of layoffs, cutting 100 jobs from its 725 workforce as part of what it described as restructuring. Another 63 workers were laid off in July, and more employees followed in December.

Radenbaugh stepped down as CEO and was replaced by Molyneux, who was named president and COO beginning in 2022.

The layoffs continued through 2023 and 2024, and the company stopped selling its bikes to customers in the United Kingdom and the European Union.

Rad’s struggles come amid a broader cooling of the e-bike market Europe’s VanMoof filed for bankruptcy in 2023, while Belgium-based “Rad Power Bikes” Cowboy and other rivals have struggled to find sustainable footing after the height of the pandemic era. Rising costs, tariffs and other factors have forced several electric-bike manufacturers to downsize or look for buyers.

Copy of the letter sent by the company to employees of Rad Power Bikes:

As you know, Rad Power Bikes Inc. (“Rad”) has faced economic challenges following the impact of the pandemic. Like other companies in the traditional and e-bike industry, Rad didn’t anticipate a sudden drop in consumer demand from its Covid-era peak. Rad has made significant progress in selling significant excess inventory of products manufactured during Covid and is working to reduce its liability for raw materials purchased during or shortly after Covid. However, Rad continues to face significant financial challenges, including in the form of tariffs and the macroeconomic landscape.

Over the past several months, executive leadership has explored various ways to continue Rad’s business, including strategic partnerships with other companies that could acquire the company or provide funding so the company can move forward. Until recently, such an option seemed very promising and seemed likely to take off. Unfortunately, it didn’t work out. The leadership is still working to find other viable options to keep the Rad brand alive. The collective mantra was and will be, “Save Rad.”

Rad is nothing but people and wants to make sure all employees are taken care of and provided for to the fullest extent possible. Executive leaders are hopeful that a workable solution will be found to ensure RAD team members remain gainfully employed for the foreseeable future. However, to be completely transparent, despite our collective efforts, this may not be possible, and Rad may be forced to cease operations. In the event, Rad is providing you with this notice to satisfy any existing obligations under the federal Worker Adjustment and Retraining Notification (WARN) Act and the State of Washington’s “Mini-WARN” Act (collectively the “WARN Act”). Although Rad expects that this notice will ultimately be unnecessary and does not acknowledge that the WARN Act applies or that notice is necessary, the Company still intends to provide as much notice of possible closings as possible.

To be clear, Rad’s leaders are still struggling to find a way to continue and insist that Rad’s shutdown is not a foregone conclusion. What we do now as a team can impact the mission to save Rad. Every member of the RAD team needs to provide excellent service to keep the fight going.

If the company is forced to wind up, Rad must cease operations on or after January 9, 2026 within 14 days. In that case, Rad expects that any cessation of operations would affect all locations and divisions, be permanent in nature, and terminate all employees effective January 9, 2026. Rad’s cessation of operations will not result in the “Rad Power Bikes” Company’s operations or the transfer of positions or contracts of affected employees. The affected Washington state employees (listed below) are not represented by a union and there are no bumping rights applicable to affected employees.

In accordance with the Warning Act, this notice applies only to employees employed at the Seattle office located at 1121 NW 52^n.dStreet, Seattle, WA 98107, or remote employees reporting to the Seattle office. However, Rad has elected to notify all employees regardless of location and provide the same information about Rad’s financial situation and potential next steps. All other locations employ fewer than 50 people and are not subject to the formal notification requirements of the Vigilance Act.

Rad’s Staff Adjustment and Retraining Notice:

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