WA-Based Worldwide E-Bike Maker files for Chapter 11
Monday December 15th., Rad Power E-bikes filed in Seattle, indicating they have debts well overshadowing their assets.
The company sales skyrocketed during COVID
Founded by Mike Radenbaugh and Ty Collins, former rommates at Humboldt State University in 2007, Rad Power climbed to the top of the E-bike market, and by 2019-2020 saw their company was valued at $1.65 billion.
However, following the emergency from COVID, sales slowly began to erode, then came the Consumer Product Safety Commission warning about the dangers of the lithium-ion batteries they used.
In November of 2024, the warning indicated users should remove and safely dispose of the batteries used in some of the Rad Power models. The report claimed 12 incidents were reported with battery issues, resulting in $374K worth of property damage from fires.
The warning indicated the batteries could explode or cause a fire, often if exposed to water or debris.
According to the filings, the company has assets of $32 million vs. debts or liabilities of $73 million. Company officials indicate there are efforts being made to try to reorganize and save the company. All told, they are estimated to have sold at least 700,000 units combined from all their models.
KEEP READING: Scroll to see what the big headlines were the year you were born
Gallery Credit: Andrew Lisa
More From 870 AM KFLD
