Seattle-based e-bike giant Rad Power Bikes has filed official notice to Washington State as well as the company’s 64 Washington employees that the company could end operations “as early as January 2026.”
A Nov. 7 filing with the state (PDF) warns both service-level workers at the company’s retail and repair shop as well as corporate workers at its Seattle headquarters that layoffs could start as early as Jan. 9, 2026.
A Rad Power Bikes spokesperson said in a statement to Seattle Bike Blog that “no final decisions have been made,” and the company’s leaders are “actively pursuing all viable options to keep the company operating.” A letter to employees blames a combination of factors to explain the company’s financial crisis, including tariffs and the industry-wide drop in consumer demand for bikes following the sales boom during the early years of the Covid pandemic.
The letter also states that Rad was close to some kind of major buyout or investment recently, but “unfortunately, that did not come to fruition.” The company urged workers to “keep providing excellent service to keep fighting.”
Founded in 2005, the Seattle-based e-bike retailer grew to become one of the largest direct-to-consumer bike makers in the U.S. It has offered everything from city bikes to cargo bikes to off-road bikes, and often for lower prices than most physical bike shops could offer. Rad was well-positioned when demand for bikes spiked during the early years of the pandemic. But like many other companies, they scaled up production shortly before consumer demand dropped in subsequent years. The company briefly expanded into Europe in 2022 before beginning a years-long contraction that has involved multiple rounds of layoffsand a couple CEO shakeups.
The company has also been the subject a few high-profile lawsuits, only some of which are resolved.
Hopefully, Rad can find a way to keep the doors open both to the sake of the employees but also for owners of Rad bikes, which often use proprietary technology that is difficult or even impossible for a third party (like a regular bike shop) to replace or maintain. As a result of the company’s success, there are a ton of Rad bikes in the world, and like any bike they will all need maintenance. This could be a critical moment for the nation’s e-bike movement as a whole.
Below is the full statement Rad sent to Seattle Bike Blog:
Last week, Rad Power Bikes issued required notifications under the federal Worker Adjustment and Retraining Notification (WARN) Act and Washington State’s Securing Timely Notification and Benefits for Laid-Off Employees Act (WA Mini-WARN), reflecting the company’s continued efforts to navigate significant financial challenges and evaluate all possible paths for its future.
As part of the company’s commitment to transparency and in compliance with the WARN Acts, Rad provided advance written notice of a potential cessation of operations that could occur as early as January 2026.
No final decisions have been made, and these notices are precautionary. Rad’s leadership is actively pursuing all viable options to keep the company operating.
At this time, Rad’s leadership is focused on supporting our employees, serving our Rad Riders, and giving Rad the best chance for longevity.
Here is the text of the message Rad sent to its employees:
As you are aware, Rad Power Bikes Inc. (“Rad”) has faced economic challenges following the pandemic impacts. Like other companies in the traditional and e-bike industry, Rad did not anticipate the sudden drop in consumer demand from Covid-era peaks. Rad has made significant progress in selling down the substantial excess inventory of finished goods built up during Covid and has been working to minimize its liabilities for raw materials purchased during or shortly after Covid. However, Rad continues to face significant financial challenges, including in the form of tariffs and the macroeconomic landscape.
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. 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.”
Rad is nothing without its people and wants to ensure that all employees are taken care of and provided for to the fullest extent feasible. Executive leaders are hopeful that a viable solution will be found to ensure that Rad team members remain gainfully employed for the foreseeable future. However, to be fully transparent, despite our collective efforts, it is possible that this may not happen, and Rad may be forced to cease operations. In the event that occurs, Rad is providing this notice to you to satisfy any obligation that may exist under the federal Worker Adjustment and Retraining Notification (WARN) Act and the State of Washington’s “mini-WARN” Act (collectively “the WARN Acts”). While Rad hopes this notice is ultimately unnecessary and does not concede that the WARN Acts apply or that notice is required, the company nonetheless wishes to provide as much notice of the potential closure as possible.
To be clear, Rad’s leaders are still fighting to find ways to continue and emphasize that the cessation of Rad’s operations is not a foregone conclusion. What we do now as a team can impact the mission to Save Rad. Rad needs every team member to keep providing excellent service to keep fighting.
In the event the company is forced to close, Rad would be required to cease operations on January 9, 2026 or within 14 days thereafter. In that case, Rad expects that any cessation of operations will affect all locations and departments, will be permanent in nature, and that all employees will be terminated effective January 9, 2026. The cessation of Rad’s operations would not be the result of relocation or contracting out the company’s operations or the affected employees’ positions. The affected Washington state employees (listed below) are not represented by any union and there are no bumping rights applicable to the affected employees.
Pursuant to the WARN Acts, this notice is applicable only to those employees assigned to the Seattle office located at 1121 NW 52nd Street, Seattle, WA 98107, or remote employees reporting to the Seattle office. However, Rad has elected to notify all employees, regardless of location, and provide the same information regarding Rad’s financial situation and potential next steps. All other locations employ less than 50 individuals and are not subject to the WARN Acts’ formal notice requirements.
This story first appeared on the Seattle Bike Blog and is reprinted with permission.
