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Rad Power Bikes Files for Chapter 11 Bankruptcy, with CEO Out After 8 Months
Rad Power Bikes seeks sale through Chapter 11 amid $73 million liabilities and a CPSC battery safety warning, continuing operations and aiming to preserve the brand.
- On Monday, Rad Power Bikes filed a Chapter 11 petition in federal court in Spokane to pursue a sale and said it plans to keep operating during the 45-60 day sale process.
- The CPSC's Nov. 24 product safety warning preceded Rad Power Bikes' move, which cited declining gross sales from $129.8 million in 2023 to $63 million through Dec. 15, as Rad disputed the agency's characterization of batteries as defective.
- Once a pandemic darling that raised more than $300 million and reached a $1.65 billion valuation, Rad Power Bikes operates nine retail locations including its Ballard flagship and issued a WARN notice for up to 64 potential layoffs.
- Inventory valued just over $14 million may be a key asset for creditors and buyers, while insurance companies and individual claimants seek about $4.3 million and two individual claimants are each owed $1 million.
- Chapter 11 gives Rad an automatic stay to pause many claims while it seeks a buyer, disputes the CPSC's findings, and highlights third-party tests plus its SafeShield battery introduced last year.
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The Columbian+2 Reposted by 2 other sources
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Coverage Details
Total News Sources15
Leaning Left3Leaning Right1Center5Last UpdatedBias Distribution56% Center
Bias Distribution
- 56% of the sources are Center
56% Center
L 33%
C 56%
11%
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