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Rad Power Bikes Files for Bankruptcy
17 Dec
Summary
- Rad Power Bikes filed for Chapter 11 bankruptcy protection on Monday.
- The company is operating and seeking a business sale within 45-60 days.
- Rad Power Bikes listed $32 million in assets and $73 million in liabilities.
Rad Power Bikes has officially filed for Chapter 11 bankruptcy protection, a move that follows recent warnings to employees about potential closure without securing new funding. The company stated its intention to continue regular business operations throughout the bankruptcy proceedings, aiming to finalize a sale of the business within the next 45 to 60 days.
The spokesperson emphasized that this step is designed to maintain operations and preserve vital relationships with customers, vendors, and partners. Rad Power Bikes joins a growing list of electric bicycle companies globally facing financial difficulties as the initial surge in demand experienced during the pandemic subsides. Notably, some other e-bike firms have successfully navigated similar restructuring processes to re-emerge under new ownership.
Financial disclosures reveal Rad Power Bikes entered bankruptcy with $32 million in assets and $73 million in liabilities, including over $8 million owed to U.S. Customs and Border Protection for unpaid tariffs, a claim the company disputes. This situation echoes past challenges where tariffs have impacted micromobility companies, contributing to their downfall.
