Electric bike company Rad Power Bikes has been sold to Life Electric Vehicles Holdings (or Life EV) for $13.2 million, after months of uncertainty surrounding its future.
The Seattle based e-bike company Rad Power Bikes filed for Chapter 11 bankruptcy protection late last year after citing “significant financial challenges” in November. The company's reported liabilities mounted to nearly $73 million, more than double its assets of $32 million.
Last Thursday, 22 January, an auction took place to acquire the company. The first bid of $8 million was eclipsed by Life EV, who agreed to pay $13.3 million, with an additional $1.6 million to cover liabilities. If the sale goes ahead, Rad Power Bikes could join Life EV’s stable of e-bikes and Harley-Davidson Serial 1 brand bikes.
In a text message to GeekWire, Life EV CEO Robert Provost said that whilst the acquisition process was still underway, "there is an exciting future being planned for Rad Power."
If the Life EV deal does not take place, Xander Bicycle Corporation has been named back-up bidder, after offering $13 million in cash.
Rad Power Bikes was founded in 2007 by Mike Randenbaugh and Ty Collins, the company grew from the custom conversions of traditional bikes to electric, to the sale of bikes direct to customers in 2015. The company rose to prominence in the pandemic bike-boom. In 2020, demand increased by 297%, which raised more than $300 million from investors over the following two years.
However, as the boom in sales slowed, supply chain costs grew, and pressure, already mounting on the company was exacerbated by reports of 31 battery fires, 12 of which resulted in an estimated $734,500 in property damage. The company informed the Consumer Product Safety Commission that it couldn't afford to offer replacement batteries to affected customers.
At its peak in 2021, Rad Power Bikes was valued at $1.65 billion, making Life EV’s purchase price around 99% lower than that peak valuation.
The sale is still being finalised, and is waiting for approval from the US bankruptcy court on 30 January 2026.
