# Seattle e-bike maker Rad Power Bikes seeks buyer after Chapter 11 filing
Rad Power Bikes, the prominent Seattle-based electric bike manufacturer, has filed for Chapter 11 bankruptcy protection as it actively seeks a buyer to sustain operations amid mounting financial pressures.[1][2][3] The filing, made on December 15 in the U.S. Bankruptcy Court for the Eastern District of Washington, lists $32.1 million in assets against $72.8 million in liabilities, with plans to complete a sale within 45-60 days while continuing business as usual.[1][2]
Bankruptcy Details and Financial Snapshot
Rad Power Bikes entered Chapter 11 to restructure debts under court supervision, triggering an automatic stay that pauses most litigation and collection efforts.[1] Court documents reveal significant debts, including over $8.3 million owed to U.S. Customs and Border Protection for unpaid import tariffs and additional millions to manufacturing partners in China and Thailand.[1] The company's inventory of e-bikes, spare parts, and accessories is valued at just over $14 million, with founder Mike Radenbaugh holding the largest equity stake at over 41%.[1] The filing indicates no funds will be available for unsecured creditors after administrative expenses, signaling a challenging path ahead for some stakeholders.[2]
The bankruptcy case, numbered 25-02183, involves Rad Power Bikes Inc. and affiliate Summit Collective Incorporated, with Angelina M. Smith as CEO signatory and legal counsel from Bush Kornfeld LLP.[2][6] This process allows the company to keep selling bikes and supporting customers during the sale pursuit.[1][3]
Factors Leading to Rad Power Bikes' Financial Strain
Financial woes escalated recently, with a WARN notice issued in early November warning of up to 64 employee layoffs in January and potential full shutdown without new funding.[1] Just weeks before the filing, the U.S. Consumer Product Safety Commission issued a public warning about fire risks in certain older Rad lithium-ion batteries, especially when exposed to water and debris.[1][4] Rad contested the warning, citing third-party lab tests confirming compliance and highlighting its newer SafeShield batteries as among the safest available.[1]
Concerns for customers have surfaced, with reports of past incidents like a battery fire allegedly destroying a former St. Paul councilmember's house, raising fears that bankruptcy could complicate warranties and support.[4] Overseas supply chain debts and tariff issues underscore broader challenges in the direct-to-consumer e-bike market.[1]
Path Forward: Sale Process and Operations During Bankruptcy
Despite the filing, Rad Power Bikes emphasizes continuity, planning to operate normally while marketing the business for sale.[1][3][5] Chapter 11 provides a structured environment for potential buyers to acquire assets free of certain liabilities, potentially preserving jobs and the brand's market presence in the growing U.S. e-bike sector.[1] Key deadlines include attorney disclosure statements and incomplete filings by December 29, 2025, and a Chapter 11 plan by April 14, 2026.[6]
Industry observers note this as a pivotal moment for Rad, once a leader in affordable e-bikes, as it navigates restructuring to avoid liquidation.[3][5]
Frequently Asked Questions
What is Chapter 11 bankruptcy for Rad Power Bikes?
**Chapter 11** allows Rad Power Bikes to reorganize debts while operating, with an automatic stay on collections and a push for sale within 45-60 days.[1][2]
How much debt does Rad Power Bikes have?
The company lists $72.8 million in liabilities against $32.1 million in assets, including major unpaid tariffs and supplier debts.[1][2]
Will Rad Power Bikes continue selling e-bikes during bankruptcy?
Yes, the company plans to keep selling bikes, supporting customers, and operating normally throughout the process.[1][3]
What caused Rad Power Bikes' financial problems?
Key issues include unpaid import tariffs, supplier debts, a recent employee layoff WARN notice, and a CPSC battery safety warning.[1][4]
Are Rad Power Bikes' batteries safe amid the bankruptcy?
The CPSC warned about fire risks in older models, but Rad claims third-party tests confirm compliance and promotes its SafeShield batteries as highly safe.[1]
What happens to customers if Rad Power Bikes sells?
Operations continue during the sale, but warranties and support could be affected; bankruptcy prioritizes secured claims over unsecured ones.[1][2][4]
🔄 Updated: 12/17/2025, 5:40:42 PM
Rad Power Bikes has filed Chapter 11 in the Eastern District of Washington listing roughly $32.1 million in assets against $72.8 million in liabilities and is seeking a sale process to run over the next 45–60 days while remaining in operation, creating a near-term auction-style window for buyers to acquire inventory and IP but also inheriting sizable creditor claims including about $8.3 million in unpaid U.S. import tariffs[2][4]. Technical implications for an acquirer include absorbing a $14.23 million inventory book (e‑bikes, parts, accessories) that may require warranty and safety remediation tied to a recent U.S. C
🔄 Updated: 12/17/2025, 5:50:39 PM
Federal and state regulators have already stepped into the Rad Power Bikes case: the U.S. Consumer Product Safety Commission issued a public warning urging consumers to stop using certain older Rad lithium‑ion batteries and said the company “refused to agree to an acceptable recall,” prompting increased regulatory scrutiny of any sale[4]. U.S. Customs and Border Protection is listed as Rad’s largest unsecured creditor—owed about $8.36 million in unpaid import tariffs—an obligation that will factor into bankruptcy negotiations and any bidder’s due diligence[2].
🔄 Updated: 12/17/2025, 6:00:51 PM
**BREAKING: Rad Power Bikes Actively Seeks Buyer Post-Chapter 11 Filing**
Seattle-based e-bike maker Rad Power Bikes, which filed for Chapter 11 bankruptcy protection on December 15, 2025, in the Eastern District of Washington (Case No. 25-02183), is pushing to sell the company within 45-60 days while continuing operations, with assets of $32.1 million against $72.8 million in liabilities—including $8.36 million owed to U.S. Customs and Border Protection for tariffs.[1][2][4] The filing lists inventory valued at $14.2 million and notes no funds for unsecured creditors, amid prior layoffs of up to 64 staf
🔄 Updated: 12/17/2025, 6:10:41 PM
**NEWS UPDATE: Consumer Unease Mounts Over Rad Power Bikes' Bankruptcy Filing**
Consumers are voicing sharp frustration online after Rad Power Bikes' Chapter 11 filing on December 15, 2025, particularly amid the U.S. CPSC's recent warning to immediately stop using certain older lithium-ion batteries due to fire risks, with the agency noting Rad "refused to agree to an acceptable recall" as it cannot provide replacements or refunds.[1][3] E-bike enthusiasts on forums and YouTube express fears of warranty voids and service disruptions, echoing pre-filing rumors of a potential shutdown by January 2026 that could affect up to 64 Seattle employees.[4][6] Rad counters that its product
🔄 Updated: 12/17/2025, 6:20:46 PM
Rad Power Bikes has filed Chapter 11 and is marketing the business for sale amid roughly $32.1 million in reported assets against $72.8 million in liabilities, including about $8.3 million owed in unpaid U.S. import tariffs, industry lawyers and filings show[1][4]. Experts say a quick sale (Rad aims for a 45–60 day window) could preserve brand value and dealer relationships but will likely require deep discounts or creditor haircuts—“Chapter 11 gives them breathing room, but bidders will price in warranty, recall and liability risk,” a restructuring attorney told reporters while analysts note inventory of ~$14.2 million could be
🔄 Updated: 12/17/2025, 6:30:54 PM
Rad Power Bikes has filed for Chapter 11 in the Eastern District of Washington listing about $32.1 million in assets against $72.8 million in liabilities and is seeking a buyer via a court-supervised sale process expected to run within the next 45–60 days, preserving operations during the marketing period[2][4]. The balance-sheet mismatch—inventory valued at roughly $14.23 million versus unsecured claims including $8.36 million owed to U.S. Customs and large trade debts to overseas manufacturers—means any acquirer would likely need to inject debtor-in-possession financing or assume substantial vendor and tariff exposures to restore supplier relationships and cover warranty/
🔄 Updated: 12/17/2025, 6:40:51 PM
**BREAKING: Rad Power Bikes Chapter 11 Sparks CPSC Fire Safety Clash Amid Sale Push**
The U.S. Consumer Product Safety Commission (CPSC) issued an urgent warning weeks before Rad Power Bikes' December 15, 2025, Chapter 11 filing in Washington's Eastern District, urging customers to immediately stop using certain lithium-ion batteries due to fire and explosion risks from water/debris exposure.[1][3][6] CPSC stated Rad "refused to agree to an acceptable recall" because the Seattle e-bike maker cited financial inability to provide replacements or refunds.[1][3] U.S. Customs and Border Protection emerges as the largest unsecured creditor at $8.36 million in unpaid tariffs, with
🔄 Updated: 12/17/2025, 6:50:51 PM
Shoppers and owners reacted with alarm and frustration after Rad Power Bikes filed for Chapter 11, with customers posting dozens of reports online saying they can’t get replacement batteries or refunds following a CPSC warning about older lithium‑ion packs—many noting the company owes consumers and creditors while listing $32.1 million in assets against $72.8 million in liabilities in its court filing[4][1]. Enthusiasts and local bike shops told reporters they’ve seen a surge in warranty and service inquiries, and social posts quoted users saying they feel “abandoned” or are scrambling to sell used Rad e‑bikes before a buyer is found, while Rad says
🔄 Updated: 12/17/2025, 7:01:07 PM
**BREAKING: Seattle e-bike giant Rad Power Bikes accelerates buyer search post-Chapter 11 filing, but experts flag slim odds for creditors amid $73M liabilities towering over $32M assets.** Bankruptcy analyst firm Bondoro notes "no funds will be available for distribution to unsecured creditors after administrative expenses," signaling a dire outlook for vendors and smaller stakeholders in the Dec. 15 Eastern District of Washington case[1][2]. Incoming CEO Kathi Lentzsch, a turnaround veteran, defends the pivot to retail channels as creating "new opportunities to reach more riders," though industry watchers question if a 45-60 day sale can salvage the brand battered by battery fire recalls and $8M in disputed U.S
🔄 Updated: 12/17/2025, 7:10:56 PM
Seattle e-bike maker Rad Power Bikes filed for Chapter 11 in the Eastern District of Washington after reporting roughly $32.1 million in assets against about $72.8–$73 million in liabilities and said it is actively seeking a buyer to preserve operations while the case proceeds[2][1]. The company told TechCrunch it expects to solicit offers and complete a sale within **45–60 days**, and its filing lists top creditors including more than $8 million claimed (disputed) by U.S. Customs and Border Protection for unpaid tariffs[1][2].
🔄 Updated: 12/17/2025, 7:20:57 PM
Seattle e-bike maker Rad Power Bikes filed for Chapter 11 bankruptcy and said it is seeking a buyer, targeting a sale within 45–60 days while continuing operations, the company disclosed in court filings and to reporters[1]. The company listed $32 million in assets and $73 million in liabilities — including a disputed claim of more than $8 million owed to U.S. Customs and Border Protection — and said the move aims to “keep the company intact and preserve the relationships we have built with riders, vendors, suppliers, and partners,” a spokesperson said[1][3].
🔄 Updated: 12/17/2025, 7:30:58 PM
**LIVE UPDATE: Consumer Alarm Grows Over Rad Power Bikes' Chapter 11 Filing and Battery Warnings**
Consumers are voicing sharp frustration online after Rad Power Bikes' December 15 Chapter 11 filing revealed $72.8 million in liabilities against $32.1 million in assets, with many citing fears over warranty support for their e-bikes amid the company's sale pursuit.[1][2][4] The U.S. Consumer Product Safety Commission’s recent urgent warning to "immediately stop using" certain Rad lithium-ion batteries due to fire risks—after Rad "refused to agree to an acceptable recall" lacking funds for replacements or refunds—has amplified public backlash, including forum posts decrying the firm’s thir
🔄 Updated: 12/17/2025, 7:40:58 PM
Rad Power Bikes has filed Chapter 11 in the Eastern District of Washington listing roughly $32.1 million in assets against $72.8 million in liabilities and is marketing the business for sale with a 45–60 day stalking‑horse/sale timetable in filings, meaning potential buyers can acquire operations subject to bankruptcy‑court approval while the company continues to operate under an automatic stay[2][4]. Technical implications for an acquirer include absorbing inventory valued at about $14.23 million, assuming exposure to $8.36 million in unpaid U.S. import tariffs (largest unsecured claim), and inheriting fragmented supplier and warranty/legal exposures that the filing says
🔄 Updated: 12/17/2025, 7:51:03 PM
Rad Power Bikes, which reported about $32.1 million in assets against roughly $72.8–$73 million in liabilities, has filed Chapter 11 and is marketing the business for sale with a 45–60 day sale window, a move analysts say aims to preserve operations while maximizing recovery for creditors[1][2]. Industry experts and turnaround specialists quoted by TechCrunch and GeekWire warn that buyer interest will hinge on resolving the company’s product-safety controversies (including a CPSC warning and reported battery fires) and its substantial unsecured claims — factors that could depress valuation or force asset-only bids, according to commented analysis in those reports[1][4
🔄 Updated: 12/17/2025, 8:01:20 PM
Industry analysts say Rad Power Bikes’ Chapter 11 filing and 45–60 day sale timeline heighten the risk of asset-stripping but could attract strategic buyers seeking scale in the booming e‑bike market, with analysts noting the company’s reported $32 million in assets against $73 million in liabilities as a key valuation constraint[1]. Battery‑safety concerns and the CPSC’s warning — which followed 31 fire reports — have “materially increased the company’s legal and reputational overhang,” one industry veteran told TechCrunch, meaning any buyer will likely demand deep discounts or substantial indemnities to move forward[1].