Rad Power Bikes, a leading U.S. electric bicycle manufacturer, has told employees it may shut down operations in January 2026 if it fails to secure new funding or a buyer, according to an internal email cited by TechCrunch.
The Seattle-based company said in the email that its leadership is “still fighting to find ways to continue,” but warned that a shutdown “is not a foregone conclusion.” A potential rescue deal that had appeared “very promising” recently fell through, the message added.
“Rad is nothing without its people and wants to ensure that all employees are taken care of and provided for to the fullest extent feasible,” the company wrote in the email. “Despite our collective efforts, it is possible that this may not happen, and Rad may be forced to cease operations.”
A company spokesperson confirmed Rad Power’s leadership remains focused on supporting staff, serving customers, and exploring all options to ensure business continuity.
Rad Power has faced mounting financial challenges since the pandemic-driven surge in demand faded. The company cited tariffs, weakening consumer demand, and a difficult macroeconomic environment as ongoing headwinds.
The e-bike maker has undergone multiple rounds of layoffs in recent years and replaced its CEO earlier in 2025, appointing turnaround specialist Kathi Lentzsch. Management has since been seeking “strategic partnerships” or acquisition opportunities to keep the company afloat, according to the internal memo.
Rad Power issued a Worker Adjustment and Retraining Notification (WARN) to employees at its Seattle headquarters last week, warning that 64 workers could be laid off as early as January 9. The notice indicated that if the company is unable to secure a financial lifeline, it may “cease operations on January 9, 2026, or within 14 days thereafter,” affecting all departments and locations.
Founded in 2007, Rad Power became one of North America’s most prominent e-bike brands, but it now joins a growing list of micromobility companies—including Cake, VanMoof, Superpedestrian, and Bird—that have faced financial distress or closure in recent years.
