E-bike maker Rad Power Bikes (RPB) has filed for Chapter 11 bankruptcy protection as part of a plan to sell the business within the next 45 to 60 days. The filing was executed in the U.S. Bankruptcy Court for the Eastern District of Washington in Spokane.
“As we work to secure a sustainable future for the Rad brand, Rad has filed for Chapter 11 protection as part of a process to complete a sale of the company within the next 45 to 60 days,” RPB said in a media statement. “This step allows us to keep operating in the ordinary course of business while we pursue the best possible outcome for the people who rely on Rad every day. Our goal is to keep the company intact and preserve the relationships we have built with riders, vendors, suppliers, and partners.”
Bankruptcy Court filings obtained by SGB Executive reveal RPB listed roughly $32.1 million in assets against $72.8 million in liabilities. The debt includes over $8.3 million owed to the U.S. Customs and Border Protection for unpaid import tariffs, along with millions more owed to overseas manufacturing partners in China and Thailand.
The company’s remaining inventory of e-bikes, spare parts and accessories is valued at just over $14 million. Founder Mike Radenbaugh remains the largest equity holder, with just over 41 percent ownership.
The filing also shows that sales declined from $129.8 million in 2023 to $103.8 million in 2024 and $63.3 million so far this year.
In March 2025, the company appointed former Bartell Drugs CEO Kathi Lentzsch as its new chief executive officer and Board director, closing the loop after the surprising departure of former CEO Phil Molyneux. The Seattle-based e-bike brand said in a media release at the time that “Lentzsch has deep experience transforming consumer-facing and B2B businesses.” Puget Sound Business Journal reported Tuesday, December 16, that she was “out after eight months” at the helm.
The company reported that company CFO Angy Smith has been elevated to CEO. She joined RPB in April 2025.
RPB has spent the past year facing a range of financial, legal and product-related challenges. The filing arrived 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 the affected customers. Rad responded to the recall, stating that its batteries were tested by third-party labs and found to be compliant with industry safety standards.
In early November 2025, RPB issued a WARN notice to Washington state officials, indicating that up to 64 employees could be laid off in January 2026 and warned that the company could shut down entirely if additional funding was not secured. In the letter, leadership said Rad has been dealing with “economic challenges following the pandemic impacts,” including a sharp drop in consumer demand and ongoing financial pressures. The company described efforts over the past several months to find strategic partners or funding, noting that one deal that appeared likely to close “did not come to fruition.”
Image courtesy Rad Power Bikes
