Rad Power Bikes faces shutdown in January without new funding

Rad Power Bikes has issued a warning to its employees about a possible shutdown in January if the company fails to secure fresh funding or find a buyer, as revealed in an internal email obtained by TechCrunch. The leadership team expressed determination in their ongoing efforts to explore options that could keep the company operational, emphasizing that shutting down is not an inevitable outcome. In the communication sent by the company's human resources department, employees were informed about a previously promising funding opportunity that ultimately fell through. The specifics of this deal were not disclosed. The email highlighted the importance of the workforce, stating, "Rad is nothing without its people" and assured employees that leadership is committed to their well-being during this uncertain period. Seattle-based Rad Power has faced significant challenges in recent years, including multiple layoffs following the pandemic. Initially, the surge in demand for micromobility solutions like theirs was a positive trend; however, a sudden decline in consumer interest left the company with excess inventory, as noted in the email. Furthermore, Rad Power is grappling with substantial financial hurdles, including tariffs and broader economic issues. A company spokesperson reiterated that the focus remains on supporting employees and serving customers while striving for a sustainable future. Rad Power is not alone in facing difficulties within the e-bike and micromobility sector, as several competitors, such as Cake, VanMoof, Superpedestrian, and Bird, have also encountered financial setbacks. Despite the current turmoil, Rad Power has produced some of the most innovative e-bikes available. Earlier this year, in response to financial strains, the company appointed Kathi Lentzsch as CEO, a veteran in revitalizing struggling businesses. Lentzsch and her team have been actively seeking strategic partnerships to either acquire Rad Power or provide necessary funding. Recently, the company issued a Worker Adjustment and Retraining Notification to its Seattle staff, indicating that layoffs could commence as early as January 9. This notice is not a targeted layoff but rather a requirement due to the number of employees at that location. The email clarified that if the company is forced to close, operations would cease on January 9, 2026, or within 14 days thereafter, affecting all locations and resulting in the termination of all staff.