Rad Power Bikes faces closing in January without new financing

Rad Power Bikes has informed its employees that it will close its doors in January if it cannot find new financing or be acquired, according to an internal email to employees seen by TechCrunch.

The company’s leadership is “still struggling to find ways to continue,” and “cessation of RAD operations is not a foregone conclusion,” according to an email sent by RAD Power’s “people team.” Rad Power employees were told there was a “very promising” option to keep the company alive that “seems likely to close,” but the deal — which was not identified in the email — “did not come to fruition.”

“Rad is nothing without its employees, and wants to ensure that all employees are cared for and provided to the greatest extent possible. Executive leaders hope to find a viable solution to ensure Rad team members remain in gainful employment for the foreseeable future. However, to be completely transparent, despite our collective efforts, it is possible that this will not happen, and Rad may be forced to cease operations,” the email said. GeekWire was the first to report the contents of the email.

Seattle-based Rad Power has gone through multiple rounds of layoffs over the past few years after the pandemic ended. While the early days of the pandemic were a boon for small mobility companies like Rad Power, a “sudden drop in consumer demand” left the company saddled with excess inventory, according to an email seen by TechCrunch. “RAD continues to face significant fiscal challenges, including in the form of tariffs and the macroeconomic landscape.”

“At this time, Rad leadership is focused on supporting our employees, serving our Rad Riders, and giving Rad the best chance at longevity,” a company spokesperson said.

Rad Power isn’t the only e-bike or micromobility company to have run into problems recently. A number of other companies have gone out of business or had to restructure over the past few years, such as Cake, VanMoof, Superpedestrian, and Bird.

Despite the turmoil in the industry, Rad Power was still considered one of the most compelling e-bikes on the market. But facing mounting financial pressures, the company replaced CEOs earlier this year. They brought in a CEO named Kathy Lentzsch, who had spent decades turning around underperforming companies.

Lentzsch and other Rad Power executives have spent the past few months exploring “strategic partnerships with other companies that could acquire Rad Power.” [Rad Power] “Or provide financing so the company can continue to move forward,” he said in the email.

Last week, the company issued a worker adjustment and retraining notice to employees at its Seattle headquarters, which told them that 64 people working there could be laid off as soon as January 9. But this isn’t a targeted layoff, according to the email — it’s just Rad Power’s only office with enough workers to warrant this kind of mandatory warning.

“In the event the company is forced to close, Rad will be required to cease operations on January 9, 2026, or within 14 days thereafter,” according to the email. “In this event, RAD expects that any cessation of operations will impact all locations and departments, will be permanent in nature, and all employees will be terminated effective January 9, 2026.”