Rad Power Bikes faces closure in January without new funding

Rad Power Bikes has told employees it will close in January if it can’t find new funding or be acquired, according to internal staff emails seen by TechCrunch.

In an email from Rad Power’s Human Resources team, the company’s management team is “still fighting to find a way to continue” and that “closing Rad is not a foregone conclusion.” Rad Power employees were told that there were “very promising” options to keep the company afloat and that it “looks likely that closure” would occur, but the deal “did not materialize,” which was not specified in the email.

“Rad cannot exist without its employees, and we want to ensure that all employees are cared for and provided with the maximum benefits practicable. “We are hopeful that a resolution will be found. However, despite our collective efforts to be completely transparent, this may not happen and Rad may be forced to cease operations,” the email said. GeekWire first reported the contents of the email.

Seattle-based Rad Power has experienced multiple layoffs over the past few years due to the pandemic. The early days of the pandemic were a boon for micromobility companies like Rad Power, but a “sudden decline in consumer demand” left the company with excess inventory, according to an email seen by TechCrunch. “Rudd continues to face significant financial challenges, including tariffs and macroeconomic conditions.”

“Rado’s leadership is focused at this time on supporting our employees, serving our Radriders, and giving Radriders the best chance for longevity,” a company spokesperson said.

Rad Power isn’t the only company to run into problems in the e-bike and micromobility space recently. Many companies have gone bankrupt or been forced to restructure in recent years, including Cake, VanMoof, Superpedestrian, and Bird.

Despite the turmoil in the industry, Rad Power was still considered to make some of the most attractive electric bikes on the market. However, facing increasing financial pressure, the company replaced its CEO earlier this year. The company has brought on an executive, Kathy Lentsch, who has spent decades turning around struggling companies.

Lentsch and other Rad Power executives have spent the past few months exploring “strategic partnerships with other companies that could be acquired.” [Rad Power] Or, please provide funding so the company can continue moving forward,” the email states.

Last week, the company issued a worker adjustment and retraining notice to employees at its Seattle headquarters, telling the 64 people who work there could be laid off as early as Jan. 9. But the email says this is not a targeted layoff and is the only Rudd Power office with enough workers to require this type of mandatory warning.

“If the company is forced to close, Rad must cease operations on January 9, 2026, or within 14 days thereafter,” the email said. “In that event, RAD anticipates that the suspension of operations will impact all locations and departments and be permanent in nature, with all employees being terminated effective January 9, 2026.”