In a significant development, Rad Power Bikes has auctioned its assets for $13.2 million as part of its bankruptcy proceedings, confirmed the company on Monday. The auction, which took place on January 22, attracted five bidders, with Life Electric Vehicles Holdings Inc. emerging as the winning bidder. Their bid, which surpassed an initial offer of $8 million, totaled $14.9 million when accounting for liabilities.
The backup bid was made by Retrospec, valued at $13 million. While the sale is not finalized and requires court approval, it includes the acquisition of Rad's inventory, intellectual property, and various assets. However, the future of the Rad brand and its e-bike models under Life EV remains uncertain, as Rad's spokesperson has declined to comment on the matter.
Once valued at $1.65 billion, Rad Power Bikes experienced a surge in demand during the COVID-19 pandemic, but faced a downturn in 2022 due to various operational challenges. The outcome of this auction marks a pivotal moment in the company's trajectory since its launch in 2015.