Rad Power Bikes: From Pandemic Success to Uncertain Future

In the heart of Seattle’s Ballard neighborhood, Rad Power Bikes grew from a small direct-to-consumer electric bicycle company to North America’s leading e-bike seller during the pandemic. Founded in 2007 by Mike Radenbaugh and Ty Collins, who built their first e-bike together as university students, Rad officially launched in 2015 and quickly rose to prominence. The company experienced explosive growth during COVID-19 as consumer interest in alternative transportation surged. This momentum attracted more than $329 million in funding from high-profile investors, including Vulcan Capital, Morgan Stanley’s Counterpoint Global, and Fidelity Management & Research Company. By 2021, Rad had achieved “unicorn” status with a valuation of $1.65 billion, establishing itself as one of Seattle’s most promising consumer hardware startups and a shining example of pandemic-era business adaptation.

Unfortunately, the company now faces “significant financial challenges” that threaten its existence. On Friday, Rad filed a Worker Adjustment and Retraining Notification (WARN) with Washington state, providing advance notice of a “potential cessation of operations” that could occur as early as January 2026. While the company spokesperson emphasized that “no final decisions have been made” and the notices are “precautionary,” the filing indicates 64 jobs at Rad’s Seattle headquarters would be affected if the company shuts down, including the CEO, CFO, and various director-level positions. Currently led by CEO Kathi Lentzsch, who previously ran Bartell Drugs, Rad’s leadership is “actively pursuing all viable options” to keep the business operating, including seeking new funding or a potential acquisition. One “very promising deal” that appeared likely to close recently fell through, adding urgency to the company’s situation.

Rad’s struggles mirror broader challenges in the e-bike industry, which has cooled significantly since pandemic highs. In a letter to employees, the company acknowledged it “did not anticipate the sudden drop in consumer demand from Covid-era peaks” and cited additional challenges “in the form of tariffs and the macroeconomic landscape.” Similar difficulties have affected other e-bike manufacturers, with Europe’s VanMoof filing for bankruptcy in 2023 and Belgium’s Cowboy also experiencing financial turbulence. Despite these obstacles, Rad continues operating its retail locations across nine cities in the U.S. and Canada, selling bikes on its website and promoting Black Friday deals. The company has adopted a new internal mantra—”Save Rad”—replacing its longstanding slogan “Ride Rad,” reflecting the determination of its leadership to find solutions.

The company’s current predicament represents a dramatic reversal from its pandemic success story. During COVID-19, Rad saw a staggering 297% increase in demand as consumers sought new transportation and exercise options. This surge prompted the company to raise $150 million in early 2021, followed by another $154 million later that year to support its rapid expansion. Before these major funding rounds, Seattle entrepreneurs Darrell Cavens and Mark Vadon, who helped grow online retail giants Blue Nile and Zulily, had invested in Rad in 2019, followed by a $25 million investment led by Vulcan Capital in 2020. These investments fueled Rad’s growth and established its reputation as one of Seattle’s most promising startups.

However, signs of trouble began emerging in April 2022, when Rad initiated the first of several rounds of layoffs, cutting 100 positions from its 725-person workforce as part of a restructuring. Additional layoffs followed in July and December of that year, coinciding with co-founder Radenbaugh stepping down as CEO, replaced by Phil Molyneux, who had been hired as president earlier in 2022. The downsizing continued into 2023 and 2024, with the company also withdrawing from the United Kingdom and European Union markets. Molyneux himself stepped down earlier this year, making way for current CEO Lentzsch, who now faces the challenging task of guiding the company through its financial difficulties. The need to comply with Washington’s Mini-WARN Act, which requires employers to provide 60 days’ advance written notice for mass layoffs or business closures affecting 50 or more employees, prompted the recent filing.

In its letter to employees about the potential closure, Rad emphasized that the company’s leadership is “still fighting to find ways to continue” and that “cessation of Rad’s operations is not a foregone conclusion.” The letter acknowledged that “Rad is nothing without its people” and expressed hope that “a viable solution will be found to ensure that Rad team members remain gainfully employed for the foreseeable future.” If forced to close, the company indicated operations would cease around January 9, 2026, affecting all locations and departments permanently. Despite these challenges, Rad’s leadership remains committed to finding a path forward, encouraging every team member to “keep providing excellent service” as part of the collective mission to “Save Rad.” The next few months will prove decisive for the once-thriving e-bike maker as it attempts to navigate this critical juncture in its history and preserve the innovative brand it has built over the past decade.