Rad Power Bikes, a Seattle-based producer of electric bicycles, has submitted a Chapter 11 bankruptcy petition in Spokane federal court. The filing shows liabilities of approximately $73 million, which is more than double the company’s assets of $32 million. This comes as the company works on a sale to maintain its brand, following a series of financial difficulties.
In a recent statement, Rad Power Bikes indicated that it aims to retain its operations while seeking an optimal outcome for stakeholders. The company is targeting a sale completion within 45–60 days. Despite the financial turmoil, Rad intends to preserve its connections with customers and partners.
Recent challenges include a warning from the Consumer Product Safety Commission regarding potential hazards associated with the company’s lithium-ion batteries. Additionally, Rad had previously notified the Washington state Employment Security Department about possible shutdowns affecting 64 jobs as early as January.
Founder Mike Radenbaugh continues to hold a significant share of the company, with an ownership stake exceeding 41%. Institutional investors also own considerable minority shares, including VCVC V LLC and Durable Capital Master Fund LP.