US e-bike firm Rad Power faces shut down in January 2026
- ByStartupStory | November 11, 2025
U.S.-based e-bike maker Rad Power Bikes is facing a possible shutdown by January 2026 if it cannot secure new funding or be acquired, according to an internal email sent to employees. The Seattle company, once a leading player in North America’s e-bike market, warned staff that operations would cease on or shortly after January 9, 2026, impacting all locations and departments with mass layoffs expected.
Rad Power’s financial troubles stem from a steep drop in consumer demand following a pandemic-driven surge, coupled with mounting tariffs and broader economic headwinds. These challenges have led to multiple rounds of layoffs and executive shakeups in recent years. Earlier this year, the company replaced its CEO with Kathi Lentzsch, an experienced turnaround executive, who has since been seeking strategic partnerships or funding to keep the company afloat.
Employees were informed that a promising deal to sustain the business fell through, leaving the company’s future uncertain. A Worker Adjustment and Retraining Notification (WARN) was issued for its 64-person Seattle headquarters staff, serving as a formal warning of potential layoffs and facility closure.
Despite the grim outlook, Rad’s leadership stated it continues to explore all viable options to extend operations, emphasizing support for employees and customers during this precarious period. However, the email highlighted that cessation of operations remains a possibility.
Rad Power’s difficulties mirror a broader contraction in the micromobility sector, where several competitors have exited or restructured amid fluctuating demand and evolving market conditions. Once at the forefront of the electric bike revolution, Rad Power now faces a critical juncture that may mark the end of its journey unless a last-minute deal materializes.
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