Rad Power Bikes, the Seattle-based company that set out to upend the traditional bike industry with direct-to-consumer electric bikes, has told Washington state officials it plans to lay off 64 employees and could shut down entirely early next year if new funding doesn’t materialize.
The notice, filed under Washington state’s Worker Adjustment and Retraining Notification Act and first reported by Geekwire, said Rad would permanently close its Seattle headquarters in January. An internal email to employees, cited by Geekwire, described months of effort to secure strategic partnerships or new capital. One promising deal reportedly fell through at the last minute, leaving the company in what the letter called “significant financial challenges.”
“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. Executive leaders are hopeful that a viable solution will be found to ensure that Rad team members remain gainfully employed for the foreseeable future. However, to be fully transparent, despite our collective efforts, it is possible that this may not happen, and Rad may be forced to cease operations,” the internal email reads.
Founded in 2007 by Mike Radenbaugh and Ty Collins, Rad Power emerged from the DIY e-bike movement and rode the pandemic boom to rarefied air: more than $300 million in venture funding, a billion-plus valuation, and the kind of mainstream brand recognition most legacy bike companies could only envy. Rad’s bright orange step-throughs and cargo bikes became ubiquitous across the US.
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