Rad Power Bikes, a major player in North America’s electric bike market, filed for Chapter 11 bankruptcy on December 15, 2025. The Seattle-based company listed $32.1 million in assets against $72.8 million in liabilities, showing deep financial trouble after a boom during the pandemic.
Humble Start Leads to Boom
Mike Radenbaugh built his first electric bike as a teenager in 2007. His company, Rad Power Bikes, took off during the 2020 COVID-19 lockdowns when demand for bikes surged. Sales jumped 297% in May 2020 compared to the year before, pushing the firm to grow fast.
The company hired over 600 workers and rented cargo ships to bring in bikes from Asia. Investors like Fidelity and Morgan Stanley poured in $329 million. By late 2021, Rad reached a $1.65 billion valuation based on hopes of nonstop growth.
Sales Drop and Rising Costs
Demand fell sharply after lockdowns ended in 2022, leaving Rad with months of unsold bikes. Revenue dropped from $129.8 million in 2023 to $103.8 million in 2024, and just $63.3 million through mid-December 2025.
Tariffs on Chinese imports hit 55% by 2025, including base duties and extra levies. U.S. Customs demanded $8.4 million from Rad in a dispute, adding to the strain. Leaders changed often: Radenbaugh left as CEO in 2022, followed by others until Angelina Smith took over in December 2025.
Rivals Pull Ahead
Competitors like Aventon grabbed 25% of the North American e-bike market by late 2025. They used efficient direct sales while Rad struggled. Brands such as Trek and Specialized relied on store networks that Rad did not have.
Rad tried selling at 150 Best Buy stores starting in September 2024, but cash shortages hurt. Analysts saw $40 million in yearly losses, or $3-4 million a month, with only $6.7 million in cash left.
Battery Fires Spark Crisis
In November 2025, the Consumer Product Safety Commission warned about fire risks in some Rad batteries. Officials reported 31 incidents, including 12 cases of property damage worth $734,500. Some fires happened without charging.
Rad refused a full recall, saying costs would bankrupt it outright. The firm offered fixes for affected batteries, but regulators rejected the plan. Without money for refunds or replacements, Rad filed for bankruptcy to seek court help and a buyer.
Bankruptcy Plan and Industry Lessons
Chapter 11 lets Rad keep running while looking for a buyer within 45-60 days, possibly by early February 2026. A company spokesperson said the move protects customers and the brand. WARN notices went to 64 Seattle workers in November, hinting at layoffs by January without new funds.
Suppliers top the creditor list, including Bangkok Cycle Industrial at $5.4 million and others like Jinhua Vision at $1.4 million. Rad joins other bike failures, such as VanMoof in 2023 and Juiced in 2024. Survivors controlled stock, cut costs, and built cash reserves where Rad fell short.
The global e-bike market hit $61.89 billion in 2024 and could reach $113.64 billion by 2030, growing at 10.3% yearly. In the U.S., it may top $4.5 billion by 2034. The fall of Rad shows the risk of chasing growth without strong foundations, even as demand rises with city trends and better tech.
Sources
Rad Power Bikes Chapter 11 Bankruptcy Petition Filing. U.S. Bankruptcy Court for the Eastern District of Washington, December 15, 2025
Consumer Product Safety Commission Warning: Lithium-Ion Batteries for Rad Power Bikes E-Bikes Fire Hazard. CPSC, November 2025
Rad Power Bikes Files for Chapter 11 Bankruptcy Protection. Bicycle Retailer and Industry News, December 16, 2025
Rad Power Bikes’ Biggest Unpaid Bill is $8.3M to U.S. Customs, as Tariffs Squeeze the Industry. GeekWire, December 2025
Rad Power Bikes Files for Chapter 11 Bankruptcy Protection. Cycling Weekly, December 16, 2025
Anatomy of a Bike Industry Collapse. Money in Sport, December 2025