Rad Power Bikes has filed for Chapter 11 bankruptcy protection, in an effort to safeguard itself from mounting challenges while reorganising its finances as part of a potential sale.
Once one of the most prominent names in the e-bike market, the Seattle-based e-bike brand has spent the past year grappling with financial, legal and product-related challenges. And this filing comes just weeks after the U.S. Consumer Product Safety Commission (CPSC) issued an urgent warning, advising consumers to immediately stop using some of Rad’s batteries due to fire risk. The CPSC said Rad “refused to agree to an acceptable recall” as the company is unable to offer replacement batteries or refunds to all consumers. Rad also told Cycling Weekly that it stands by its products, which were tested and deemed safe by a third party.
Chapter 11 may also allow Rad to seek new financing, restructure insurance arrangements, or reduce other costs in order to fund ongoing operations,” meaning Rad can continue selling bikes and providing customer support while the case unfolds.
