Rad Power Bikes speeds toward financial cliff

It may be the end of the road for Rad Power Bikes.

The beloved Seattle e-bike maker notified the Washington State Employment Security Department that it may need to shut down in January if it can’t find stop-gap funding by then.

“No final decisions have been made, and these notices are precautionary,” a spokesperson for the company said. “Rad’s leadership is actively pursuing all viable options to keep the company operating.”

In a letter to employees shared with KUOW, Rad said the company faces “significant financial challenges” that could lead to a closure in the new year that would result in 64 layoffs. It would be the end of one of the country's top e-bike manufacturers.

Like many outdoor gear companies, Rad saw a surge in demand during the pandemic and stocked up on inventory to meet it. Then, a sudden drop in consumer demand left Rad with an expensive backlog of e-bikes and materials to sell down, according to the letter.

Rad said that drop in demand, coupled with economic uncertainty and tariffs, could force the company to shut down.

“For the past several months, executive leadership has explored different ways to continue Rad’s business, including strategic partnerships with other companies that could acquire the company or provide funding so the company could keep moving forward,” the letter says.

“Until recently, one such option seemed very promising and appeared to be likely to close. Unfortunately, that did not come to fruition. Leadership is still working to find other viable options to keep the Rad brand alive. The collective mantra has been and will continue to be, ‘Save Rad.’”