Rad Power Bikes Faces Shutdown In January Without New Funding

Rad Power Bikes has informed its labor that it will unopen down successful January if it is incapable to find caller backing aliases get acquired, according to an soul unit email viewed by TechCrunch.

The company’s activity is “still fighting to find ways to continue,” and “the cessation of Rad’s operations is not a forgone conclusion,” according to nan email, which was sent by Rad Power’s “people team.” Rad Power labor were told location had been a “very promising” action to support nan institution live that “appeared to beryllium apt to close,” but nan woody — which was not specified successful nan email — “did not travel to fruition.”

“Rad is thing without its group and wants to guarantee that each labor are taken attraction of and provided for to nan fullest grade feasible. Executive leaders are hopeful that a viable solution will beryllium recovered to guarantee that Rad squad members stay gainfully employed for nan foreseeable future. However, to beryllium afloat transparent, contempt our corporate efforts, it is imaginable that this whitethorn not happen, and Rad whitethorn beryllium forced to cease operations,” nan email reads. GeekWire was first to study nan contents of nan email.

Seattle-based Rad Power has gone done multiple rounds of layoffs complete nan past fewer years coming retired of nan pandemic. While nan early pandemic days were a boon to micromobility companies for illustration Rad Power, a “sudden driblet successful user demand” near nan institution saddled pinch excess inventory, according to nan email viewed by TechCrunch. “Rad continues to look important financial challenges, including successful nan shape of tariffs and nan macroeconomic landscape.”

“At this time, Rad’s activity is focused connected supporting our employees, serving our Rad Riders, and giving Rad nan champion chance for longevity,” a spokesperson for nan institution

Rad Power is acold from nan only institution successful nan e-bike aliases micromobility abstraction to tally into problem recently. A number of others person gone retired of business aliases had to restructure complete nan past fewer years, for illustration Cake, VanMoof, Superpedestrian, and Bird.

Despite nan manufacture turmoil Rad Power was still considered to make immoderate of nan astir compelling e-bikes connected nan market. But faced pinch escalating financial pressure, nan institution swapped CEOs earlier this year. It brought successful an executive named Kathi Lentzsch who has spent decades turning astir underperforming companies.

Lentzsch and nan different executives astatine Rad Power person spent nan past fewer months exploring “strategic partnerships pinch different companies that could get [Rad Power] aliases supply backing truthful nan institution could support moving forward,” per nan email.

Last week, nan institution issued a Worker Adjustment and Retraining Notification announcement to nan labor astatine its Seattle headquarters, which told them that nan 64 group moving location could beryllium laid disconnected arsenic soon arsenic January 9. But this isn’t a targeted layoff, according to nan email — it’s conscionable nan only Rad Power agency pinch capable workers to necessitate this benignant of mandated warning.

“In nan arena nan institution is forced to close, Rad would beryllium required to cease operations connected January 9, 2026 aliases wrong 14 days thereafter,” according to nan email. “In that case, Rad expects that immoderate cessation of operations will impact each locations and departments, will beryllium imperishable successful nature, and that each labor will beryllium terminated effective January 9, 2026.”