Rad Power Bikes files for bankruptcy and is looking to sell the business | TechCrunch

"The company will continue to operate while the bankruptcy case proceeds, and it's looking to sell the business within 45-60 days, a spokesperson told TechCrunch. "This step allows us to keep operating in the ordinary course of business while we pursue the best possible outcome for the people who rely on Rad every day," they said in a statement. "Our goal is to keep the company intact and preserve the relationships we have built with riders, vendors, suppliers, and partners.""

"Rad itself had told employees in November that there had been a "very promising" option to keep the company afloat that was "likely to close," but the deal fell apart. The company has not shared more details about that potential deal. Weeks later, the Consumer Product Safety Commission (CPSC) issued a warning that older Rad Power batteries posed "a risk of serious injury and death" after receiving 31 reports of fires. Rad Power said it "strongly disagrees" with the CPSC's characterizations."

"Some of those companies have re-emerged, though, with VanMoof and Cake finding new owners during their respective court-led restructuring processes. Rad's tough November came at the end of a fairly tumultuous few years for the company. It has gone through multiple rounds of layoffs and swapped CEOs earlier this year, bringing in an executive with decades of experience turning around underperforming companies."

Rad Power Bikes filed for Chapter 11 bankruptcy, will continue operating during the proceedings, and is pursuing a sale of the business within 45–60 days. The company stated the filing allows continued ordinary operations while aiming to preserve relationships with riders, vendors, suppliers, and partners. The filing follows a failed financing option and a Consumer Product Safety Commission warning that older Rad batteries posed "a risk of serious injury and death" after 31 fire reports, a characterization Rad strongly disagrees with. The company experienced multiple layoffs, a CEO change earlier this year, and a strategic shift from direct-to-consumer toward retail distribution.

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