Rad Power Bikes faces shutdown in January without new funding

Rad Power Bikes has informed its employees that it will close in January if it can’t find new financing or acquire, according to an internal staff email seen by TechCrunch.

The company’s leadership is “still struggling to find ways to continue” and “Rad’s cessation of operations is not a foregone conclusion,” according to the email, which was sent by Rad Power’s “people team.” Rad Power officials were told there was a “very promising” option to keep the company alive that “looked likely to close”, but the deal – which was not specified in the email – “did not materialise”.

“Rad is nothing without its people and wants to ensure that all employees are cared for and provided for to the fullest extent possible. Management leaders are hopeful that a sustainable solution can be found to ensure that Rad team members remain gainfully employed for the foreseeable future. GeekWire was first to report the content of the email.

Seattle-based Rad Power has gone through several rounds of layoffs in recent years following the pandemic. While the early days of the pandemic were a boon for micromobility companies like Rad Power, a “sudden drop in consumer demand” left the company saddled with excess inventory, according to the email seen by TechCrunch. “Rad continues to face significant financial challenges, including in the form of tariffs and the macroeconomic landscape.”

“Right now, Rad leadership is focused on supporting our employees, serving our Rad Riders and giving Rad the best chance for longevity,” a company spokesperson said.

Rad Power isn’t the only company in the e-bike or micro-mobility space to run into trouble recently. Several others have gone out of business or had to be restructured in recent years, including Cake, VanMoof, Superpedestrian and Bird.

Despite the upheaval in the industry, Rad Power was still considered to make some of the most exciting e-bikes on the market. But faced with escalating financial pressure, the company changed CEOs earlier this year. He brought in an executive named Kathi Lentzsch, who 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] or provide funding so the company can continue to move forward,” according to the email.

Last week, the company issued a Worker Adjustment and Retraining notice to employees at its Seattle headquarters, which told them the 64 people who work there could be laid off starting Jan. 9. But this isn’t a targeted layoff, according to the email — it’s just the only Rad Power office with enough employees to require that kind of warning.

“In the event that 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 work stoppage affecting all locations and divisions will be permanent in nature and that all employees will be terminated effective January 9, 2026.”