Rad Power Bikes: Chapter 11 Sale Ends $1.65B E-Bike Run

Rad Power Bikes Inc., once North America's largest direct-to-consumer e-bike brand with a peak valuation of $1.65 billion in late 2021, filed chapter 11 petitions on December 15, 2025, in the U.S. Bankruptcy Court for the Eastern District of Washington. The Seattle-based company listed $32.1 million in assets against $72.8 million in liabilities and pursued an expedited Section 363 sale, targeting completion within 45 to 60 days of filing.

The case followed a rapid post-pandemic contraction: revenue fell from ~$318 million in 2021 to $63.3 million through 2025, the company cycled through four CEOs in three years, and a CPSC battery safety warning issued three weeks before the petition created liability exposure the company could not afford to remediate. At auction on January 22, 2026, Life Electric Vehicle Holdings won with a $13.2 million bid -- a 99% decline from the company's peak valuation. Investors including Fidelity, T. Rowe Price, and Morgan Stanley's Counterpoint Global, who collectively deployed more than $329 million in venture funding, face a near-total loss.

Debtor(s)	Rad Power Bikes Inc. (with affiliate Summit Collective, Inc., Case No. 25-02182)
Court	U.S. Bankruptcy Court, Eastern District of Washington (Spokane)
Case Number	25-02183
Petition Date	December 15, 2025
Judge	Hon. Whitman L. Holt (Chief Judge)
Plan Deadline	April 14, 2026

363 Sale Process

Sale structure. The bankruptcy was filed to facilitate a going-concern asset sale. Counsel Armand J. Kornfeld of Bush Kornfeld LLP outlined a target of 45 to 60 days from filing to sale completion. The company's stated objective was to "keep the company intact and preserve the relationships we have built with riders, vendors, suppliers, and partners." Hilco Corporate Finance managed the auction process. No stalking horse bidder was designated prior to the auction.

Auction results (January 22, 2026). The auction attracted five qualified bidders. Bidding opened at $8 million and escalated to a winning bid of $13,276,102 in cash from Life Electric Vehicle Holdings, Inc. The total purchase price including assumed liabilities reached ~$14.9 million. Retrospec (Xander Bicycle Corp.) served as backup bidder at $13 million.

Assets acquired. Life EV's acquisition includes all inventory (e-bikes, parts, accessories), intellectual property (trademarks and patents), accounts receivable, equipment, computers, software, and selected contracts and leases. Cash assets were excluded from the transaction.

Assumed liabilities. Life EV assumed warranty claims, in-transit inventory obligations, gift card liabilities, and accrued paid time off. The assumption of warranty claims is relevant given the pending CPSC battery safety warning affecting nine e-bike models.

Closing timeline. The sale hearing was scheduled for January 30, 2026, before Chief Judge Whitman L. Holt, with expected closing on February 13, 2026, and an outside date of February 27, 2026. The deadline for Life EV to decide which leases to assume was March 6, 2026. As of the most recent public reporting, no confirmation of sale approval or closing has been disclosed.

Buyer profile: Life Electric Vehicle Holdings. Life EV is a publicly traded company (OTC: LFEV) based in Deerfield Beach, Florida. The company operates a 31,000-square-foot manufacturing facility in South Florida and describes its strategy as "launching, acquisition, and consolidation of multiple brands of e-bikes, e-trikes, e-scooters, and light EV companies." Life EV previously acquired Harley-Davidson's Serial 1 e-bike brand in 2023, making Rad its second distressed e-bike brand purchase.

Backup bidder: Retrospec. Retrospec, operating as Xander Bicycle Corp. and based in Southern California, submitted the backup bid at $13 million. The $200,000 spread between the winning and backup bids reflected competitive bidding at auction.

Court Process and Docket Milestones

Joint administration and first-day relief. The court entered an order granting joint administration on December 16, 2025, aligning Rad Power Bikes (No. 25-02183) and Summit Collective (No. 25-02182) in a single procedural track. On December 18, 2025, the court entered an order approving bid procedures and an interim cash collateral order that set a final hearing for January 30, 2026.

Case management and hearing schedule. The court entered a case management order and a scheduling order for periodic status conferences and omnibus hearings in the first week of the case. A notice of sale free and clear was filed on December 31, 2025, setting the sale hearing for January 30, 2026.

Operational footprint adjustments. In early case filings, the debtors moved to reject selected retail and warehouse leases, including Vancouver and St. Petersburg stores and one Seattle warehouse location, while preserving other Seattle locations in the near term, as reflected in the lease rejection motion record. Later filings included additional personal property lease rejection relief and contract rejection requests, indicating continued postpetition footprint reduction ahead of closing.

Post-auction operating updates. Subsequent reporting indicated selected store closures in Vancouver and Florida while seven locations remained open, alongside a pending transfer of core assets to Life EV.

Company Background

Founding and early history. Rad Power Bikes was founded in 2007 by Mike Radenbaugh, who built his first electric bicycle at age 15 in rural Humboldt County, California. The company relaunched in 2015 as a direct-to-consumer e-bike manufacturer when Ty Collins joined Radenbaugh, shifting from custom conversions to a DTC model.

Pandemic-era growth. During the COVID-19 pandemic, e-bike demand surged approximately 297% year-over-year in May 2020. Rad became the largest e-bike brand in North America, with more than 350,000 units sold. At its peak in 2021, the company employed over 1,000 workers and generated ~$318 million in annual revenue.

Peak valuation and funding. In February 2021, Rad raised $150 million from investors including Morgan Stanley's Counterpoint Global, Fidelity, T. Rowe Price, TPG's Rise Fund, Durable Capital Partners, and Vulcan Capital. A follow-on round of $154 million in October 2021 brought total investment to more than $329 million and established a peak valuation of $1.65 billion.

Products and retail. Rad's core product line included the RadWagon, RadRunner, RadRover, RadCity, and RadExpand, generally priced in the $1,000-$2,000 range. The company operated "Rad Retail" branded stores in addition to its online DTC channel.

Revenue trajectory. Court filings reported the following revenue figures: ~$318 million (2021), ~$169 million (2022), $129.8 million (2023), $103.8 million (2024), and $63.3 million (2025 year-to-date as of filing).

Path to Financial Distress

Post-pandemic demand contraction. Revenue declined from ~$318 million at peak to $63.3 million year-to-date through 2025, a decline exceeding 80% over four years. The company had scaled operations, headcount, and inventory commitments during the boom. When demand normalized, the cost structure proved unsustainable.

Workforce reductions. Headcount peaked above 1,000 and was reduced through at least seven rounds of layoffs beginning in 2022, ultimately reaching ~100 employees at filing. In November 2025, WARN Act notices were issued to 64 Seattle-area employees regarding potential closure in early 2026.

Tariff exposure. Rad's reliance on overseas manufacturing -- primarily in Thailand and China -- generated an $8.36 million tariff claim from U.S. Customs and Border Protection, the single largest unsecured claim in the case.

CPSC battery safety warning. On November 24, 2025, the U.S. Consumer Product Safety Commission issued a safety warning for Rad Power Bikes batteries (models RP-1304 and HL-RP-S1304), citing 31 reports of fires and a risk of serious injury or death. Nine e-bike models were affected: RadWagon 4, RadCity HS 4, RadRover High Step 5, RadCity Step Thru 3, RadRover Step Thru 1, RadRunner 2, RadRunner 1, RadRunner Plus, and RadExpand 5. Rad publicly disagreed with the CPSC's characterization, stating the company "firmly stands behind our batteries." The company told the CPSC that offering full refunds or replacements would be "financially ruinous" and that it could not fund a voluntary recall. The warning was issued less than one month before the bankruptcy filing.

Product liability claims. Multiple product liability claims related to battery fires preceded the filing, including a $3.2 million subrogation claim from Lisa Gore, a $1.0 million claim from Steve Jay, and a $1.0 million claim from Susan Luck. A $1.138 million claim from Commerce Insurance was also scheduled.

Leadership instability. The company experienced four CEOs in approximately three years. Founder Mike Radenbaugh served until 2022. Phil Molyneux departed unexpectedly in February 2025 after serving since 2022. Stephanie Roberts (CFO) served as interim CEO during the subsequent search. Kathi Lentzsch was appointed in March 2025 and lasted approximately eight months. Angelina M. Smith, who joined as CFO in April 2025, was elevated to CEO in connection with the bankruptcy filing.

Failed strategic alternatives. A prior strategic partnership or funding arrangement failed before the filing, exhausting out-of-court options. The details of this failed transaction have not been publicly disclosed.

Warehouse fire. On January 18-20, 2026, during the pendency of the bankruptcy case, a fire broke out at Rad's retail warehouse in Huntington Beach, California. The store was closed at the time and no injuries were reported. The cause has not been publicly confirmed. The incident occurred two days before the auction.

Capital Structure

Assets at filing. Total estimated assets were $32.1 million, comprising ~$14.2 million in inventory (e-bikes, accessories, parts), ~$6.7 million in cash and cash equivalents, and ~$11.2 million in other operational assets. No real estate assets were reported.

Total liabilities. Estimated liabilities were $72.8 million, with ~$40.9 million in secured claims and more than $31.8 million in unsecured claims.

Secured debt. JPMorgan Chase held the senior secured position at an estimated $20-25 million. The specific terms of the prepetition credit facility have not been publicly disclosed. Total secured claims were estimated at ~$40.9 million.

Largest unsecured creditors. The bankruptcy schedules identified the following as the largest unsecured claims:

Creditor	Amount	Nature
U.S. Customs and Border Protection	$8,363,749	Unpaid import tariffs
Bangkok Cycle Industrial Co., Ltd.	$5,353,674	Trade debt (Thai manufacturer)
Lisa Gore (subrogation)	$3,200,000	Product liability / fire
Jinhua Vision Industry Co., Ltd.	$1,414,356	Trade debt (Chinese supplier)
Fuji-TA Fushida Group Area	$1,223,881	Trade debt (supplier)
Commerce Insurance	$1,138,000	Insurance claim
Steve Jay (damages)	$1,000,000	Product liability
Susan Luck (damages)	$1,000,000	Product liability

The filing stated that no funds are expected to be available for unsecured creditors after administrative expenses.

Equity structure. Founder Mike Radenbaugh held 41.3% of equity at filing. VCVC V LLC held 6.6%, Durable Capital Master Fund LP held 5.8%, and other minority holders -- including Fidelity, T. Rowe Price, and Counterpoint Ventures -- held the remaining ~46.3%.

Funding history. Total venture capital raised exceeded $329 million, including a $150 million round in February 2021 and a $154 million round in October 2021. Against the $13.2 million auction price, this represents a near-total loss of invested capital.

DIP financing / cash collateral. The debtors sought authority to use prepetition lender cash collateral at filing, and the court entered an interim cash collateral order on December 18, 2025, with a final hearing scheduled for January 30, 2026. Public sources reported ~$6.7 million in cash at filing and an expedited 45-60 day sale timeline.

Frequently Asked Questions

Why did Rad Power Bikes file for bankruptcy?

Rad Power Bikes filed chapter 11 after revenue declined from ~$318 million at peak (2021) to $63.3 million year-to-date through 2025. The filing followed a CPSC battery safety warning that the company said it could not afford to remediate, a failed strategic partnership, and multiple rounds of layoffs reducing headcount from over 1,000 to ~100. The company entered bankruptcy to pursue a going-concern sale.

Who is buying Rad Power Bikes?

Life Electric Vehicle Holdings, Inc., a publicly traded light EV company (OTC: LFEV) based in Deerfield Beach, Florida, won the auction on January 22, 2026, with a $13.2 million bid. Life EV previously acquired Harley-Davidson's Serial 1 e-bike brand. Retrospec (Xander Bicycle Corp.) was the backup bidder at $13 million. The sale remained subject to bankruptcy court approval as of the last public reporting.

What happened to Rad Power Bikes' valuation?

Rad Power Bikes reached a peak valuation of $1.65 billion in October 2021 after raising more than $329 million in venture funding from investors including Fidelity, T. Rowe Price, and Morgan Stanley's Counterpoint Global. The company sold at auction for $13.2 million, a decline of ~99% from peak valuation.

What is Rad Power Bikes?

Rad Power Bikes is a Seattle-based direct-to-consumer e-bike manufacturer founded in 2007 by Mike Radenbaugh. The company became the largest e-bike brand in North America with more than 350,000 units sold, offering models including the RadWagon, RadRunner, and RadRover in the $1,000-$2,000 price range.

What is the CPSC battery issue with Rad Power Bikes?

On November 24, 2025, the U.S. Consumer Product Safety Commission issued a safety warning for Rad Power Bikes batteries (models RP-1304 and HL-RP-S1304), citing 31 reports of fires affecting nine e-bike models. Rad told the CPSC it could not afford a recall, calling it "financially ruinous." Life EV assumed warranty claims as part of the acquisition, though the scope of any battery remediation commitment has not been publicly disclosed.

Will Rad Power Bikes continue to operate?

The company filed chapter 11 with the stated goal of selling the business as a going concern. Life EV's acquisition includes inventory, intellectual property, equipment, and selected contracts. Life EV operates a manufacturing facility in South Florida and has described a strategy of consolidating light EV brands. Whether Rad will maintain its Seattle operations, retail locations, or workforce under new ownership has not been publicly disclosed.

Will unsecured creditors receive any recovery?

The bankruptcy filing stated that no funds are expected to be available for unsecured creditors after administrative expenses. Total unsecured claims exceeded $31.8 million, including an $8.36 million tariff claim from U.S. Customs and Border Protection and $5.35 million in trade debt to Bangkok Cycle Industrial.

Who owns Rad Power Bikes?

Founder Mike Radenbaugh held 41.3% of equity at filing. Institutional investors included VCVC V LLC (6.6%), Durable Capital Master Fund LP (5.8%), and minority positions held by Fidelity, T. Rowe Price, Counterpoint Ventures, and others. Total venture capital invested exceeded $329 million.

How many employees does Rad Power Bikes have?

At filing, Rad Power Bikes employed approximately 100 to 199 people, down from a peak of over 1,000 during the 2021 pandemic boom. The company conducted at least seven rounds of layoffs beginning in 2022. In November 2025, WARN notices were issued to 64 Seattle-area employees regarding potential closure in early 2026.

Who is the claims agent for Rad Power Bikes?

No claims and noticing agent has been identified in available public sources for this case. Creditors with questions about the case may contact debtor's counsel, Bush Kornfeld LLP, and monitor filings in Case No. 25-02183.

For ongoing coverage of chapter 11 cases, visit the ElevenFlo Chapter 11 Intelligence blog.