Rad Power Bikes did not simply shut down. The company warned employees in November 2025 that it could permanently cease operations, then filed for Chapter 11 bankruptcy on December 15, 2025. Its assets were later sold in a court-supervised process to Life Electric Vehicles Holdings, Inc. The Rad brand continues under new ownership, with Rad Life Mobility identified as the operating company as of February 27, 2026.
That is good news for the brand’s continuity, but it does not mean every old warranty, debt, or customer claim transferred to the buyer. Pre-bankruptcy customer claims may need to go through the bankruptcy case, while qualifying products purchased after May 15, 2026 are covered by Rad Life Mobility’s current limited-warranty terms.
What happened to Rad Power Bikes?
Rad Power Bikes faced a credible shutdown threat but survived in a restructured form. The original corporate entity filed Chapter 11, and a buyer acquired the brand and selected assets rather than the business continuing unchanged.
The distinction is important:
- Rad Power Bikes, Inc., later renamed New Summit Collective, Inc., was the bankruptcy debtor.
- Life Electric Vehicles Holdings, Inc. won the auction for the relevant assets.
- Rad Life Mobility is the post-sale operating company identified in Rad’s current consumer and warranty materials.
The current Rad site continues to sell Rad-branded e-bikes and accessories in the United States. Continued sales, however, do not prove that the company has returned to its former financial health or that the brand will remain stable indefinitely.
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Rad Power Bikes’ shutdown and bankruptcy timeline
| Date | What happened | Why it mattered |
|---|---|---|
| November 2025 | Rad filed a Washington WARN notice warning of a possible cessation of operations. | The company said that, without new funding or another transaction, affected employees could be terminated and operations could potentially end permanently. |
| November 24, 2025 | The US Consumer Product Safety Commission issued a warning about specific Rad lithium-ion batteries. | The warning added significant safety and legal pressure during an already serious financial crisis. |
| December 15, 2025 | Rad Power Bikes, Inc. filed for Chapter 11 protection in the US Bankruptcy Court for the Eastern District of Washington, case 25-02183. | Chapter 11 allowed the company to continue operating while pursuing a sale or restructuring. |
| January 22, 2026 | A court-supervised auction was held. | Life Electric Vehicles Holdings emerged as the winning bidder, with Retrospec’s Xander Bicycle Corp. identified as the backup bidder. |
| February 2026 | The court-approved asset acquisition was completed. | Rad’s brand and acquired assets continued under new ownership. |
| February 27, 2026 | Rad’s current warranty page identifies this date as the start of the brand’s new ownership. | It provides the clearest current dividing line between the old company’s obligations and the post-sale operation. |
The November shutdown warning was more than a rumor
In November 2025, Rad warned employees that it might cease operations as early as January 2026. The Washington WARN filing reportedly covered 64 positions at the company’s Seattle headquarters and stated that, absent new financing or another transaction, affected employees could be terminated on January 9, 2026.
Rad attributed the risk to significant financial challenges, including tariffs and the broader macroeconomic environment. The filing showed that management was preparing for a possible full shutdown even as it explored funding and a potential sale.
The eventual asset sale changed that outcome. It did not erase the financial distress that led to the warning, and it did not preserve the original company as an ordinary going concern.
Why did Rad Power Bikes run into financial trouble?
The available record points to several overlapping problems rather than one publicly established cause.
Demand fell after the pandemic-era e-bike boom
Rad expanded during an unusually strong period for e-bike sales. As pandemic-era demand normalized, the broader e-bike market became more difficult. Inventory, retail locations, service operations, and staffing that made sense during rapid expansion were harder to support once sales slowed.
Tariffs and supply-chain costs increased pressure
Rad specifically cited tariffs in its employee communications. Later bankruptcy reporting described substantial unpaid tariff obligations, while court coverage showed a company whose liabilities significantly exceeded its assets.
At the time of the Chapter 11 filing, contemporary reports described approximately $73 million in liabilities and approximately $32 million in assets. Those figures explain why a sale of the assets could preserve the brand without rescuing the old corporate balance sheet.
Expansion created a heavier cost structure
Rad raised approximately $150 million in 2021 from investors including Counterpoint Global, Fidelity Management & Research, The Rise Fund, and funds advised by TPG. The financing supported expansion of retail and service operations.
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It is reasonable to infer that the company’s fixed costs and inventory exposure became more difficult to carry after demand cooled. That is an analysis of the funding and bankruptcy record, not a court finding that expansion alone caused the collapse.
Safety problems and legal pressure added to the crisis
Rad was already dealing with the 2022 RadWagon 4 tire recall when the CPSC issued its November 2025 battery warning. A product-safety problem is especially difficult for a financially distressed company because an effective remedy can require replacement inventory, refunds, customer support, logistics, and technical service.
Operations were already being cut back
The WARN filing and reported layoffs were signs of retrenchment. They indicated that Rad was reducing its operating footprint while trying to find new funding or a buyer.
Who owns Rad Power Bikes now?
Life Electric Vehicles Holdings won the bankruptcy auction with a cash bid reported at approximately $13.2 million to $13.3 million. The implied total value was reported at approximately $14.9 million when assumed liabilities were included. The sale still required court approval and closing conditions when the winning bid was first announced; official and regulatory materials later stated that the acquisition closed in February 2026.
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This does not mean Life Electric Vehicles or Rad Life Mobility assumed every obligation of the former Rad Power Bikes entity. The current warranty information says the acquired assets were purchased free and clear of the debtor’s liabilities. In practical terms, brand ownership and liability for old claims are separate questions.
What the bankruptcy means for Rad owners
If you bought your Rad bike before December 15, 2025
Rad’s current warranty page says claims involving Rad-branded products purchased before December 15, 2025 must be submitted through the bankruptcy process by filing a proof of claim.
Rad Life Mobility also states that it has no obligation to provide warranty or other service for products purchased before that date, although it may choose to offer upgrade policies or services at its discretion. Therefore, do not assume that a pre-bankruptcy warranty was automatically transferred or automatically cancelled in every circumstance. Check the bankruptcy case instructions and the current company policy for your specific claim.
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Gather your purchase receipt, order confirmation, serial number, warranty correspondence, photographs, and any repair estimates before submitting or updating a claim. A buyer who purchased a used bike should also document the original purchase date if it is available, because the relevant date may be the original product purchase rather than the date of the resale.
If you bought a qualifying product after May 15, 2026
Rad Life Mobility’s current limited-warranty terms apply to qualifying Rad-branded products purchased in the United States or Canada after May 15, 2026, subject to the conditions in those terms. The terms may address issues such as who is covered, proof of purchase, exclusions, and the remedy available, so read the current policy rather than relying on an older Rad warranty document.
The new warranty coverage is not a retroactive promise to cover products purchased before the bankruptcy filing. It also does not guarantee that every repair, part, accessory, or service will remain available for the life of the bike.
If you are considering a current Rad purchase
The current store continues to list current Rad-branded models and accessories. The brand’s continued presence is a relevant fact, but it should not be treated as proof of long-term financial stability.
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Before buying, review the current seller information and warranty terms, confirm that the model fits your needs, and consider how you would obtain service if the company’s support network changes again. A local bicycle shop may not service every Rad model, and an independent shop is not automatically authorized by Rad or required to honor Rad’s warranty.
Urgent battery warning: check the label before riding or charging
The CPSC’s November 24, 2025 warning applies to specific Rad lithium-ion batteries—not automatically to every Rad bike or every Rad battery.
The affected battery model numbers identified by the CPSC are:
RP-1304RAD-S1304YHL-RP-S1304
The agency said these batteries could unexpectedly ignite or explode, particularly after exposure to water and debris. It cited 31 reported fires and approximately $734,500 in property damage across 12 of those incidents.
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The batteries were sold with, or as replacements for, several Rad models, including:
- RadWagon 4
- RadCity HS 4
- RadRover High Step 5
- RadCity Step-Thru 3
- RadRover Step-Thru 1
- RadRunner 1
- RadRunner 2
- RadRunner Plus
- RadExpand 5
Model names alone are not enough to determine whether a battery is affected. Check the model number printed on the battery itself and follow the CPSC’s official safety instructions.
If your battery matches one of the warning’s model numbers
- Stop using and charging it immediately.
- Remove it from the bike if you can do so safely and follow the agency’s handling instructions.
- Do not put it in household trash or a normal recycling bin. Arrange disposal through local hazardous-waste battery recycling or the procedure specified by local authorities.
- Do not substitute a random marketplace battery. Voltage, connectors, battery-management systems, physical fit, certification, and charging requirements all matter.
The CPSC stated that Rad had refused to agree to an acceptable recall and had indicated that its financial situation prevented it from offering replacement batteries or refunds to all affected consumers. That statement explains why owners should not wait for a conventional replacement program before taking the stop-use warning seriously.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.RadWagon 4 tire recall: a separate issue
The battery warning should not be confused with the earlier RadWagon 4 tire recall. In 2022, the CPSC said that approximately 29,300 RadWagon 4 bikes and certain separately sold tires were affected.
The recalled tires could blow out, deflate, or separate from the sidewall, creating fall and crash hazards. The stated remedy was a free repair involving replacement of both tires and the rim strips.
If you own a RadWagon 4, determine whether the recall repair was completed before riding. This tire recall is separate from the battery-model warning, so completing the tire remedy does not establish that the battery is safe.
How owners should approach repairs now
Owners dealing with a flat tire, damaged wiring, brake problem, battery issue, or uncertain recall status should avoid treating the bankruptcy as a reason to improvise a safety-critical repair.
- Identify the exact bike and component. Record the model, serial number, battery model number, and purchase date.
- Check the relevant current Rad support and safety information. Use the current policy for newer purchases and the bankruptcy process for older claims.
- Separate warranty questions from safety questions. A disputed warranty does not make an unsafe battery safe to use, and a bike being outside warranty does not mean it cannot be inspected or repaired.
- Ask a local e-bike service shop about compatibility before authorizing work. Confirm that the shop can service your particular Rad model and electrical system.
- Keep written records. Save diagnostic results, invoices, photographs, and communications in case a warranty, insurance, recall, or bankruptcy claim later depends on them.
Do not assume that a generic 48-volt battery, charger, connector, or online replacement listing is a safe substitute. A product that appears to fit physically may still be electrically incompatible or unsuitable for the bike’s battery-management and charging system.
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Does the asset sale guarantee Rad’s long-term future?
No. The sale establishes that the brand and selected assets continued under a new owner. It does not establish profitability, adequate capitalization, permanent staffing, a guaranteed parts supply, or long-term service coverage.
The most accurate description is therefore:
Rad Power Bikes came close to disappearing after warning employees that it might permanently cease operations, but it ultimately entered Chapter 11 and sold its assets to Life Electric Vehicles Holdings. The Rad brand now operates under new ownership, while older customer claims and certain warranty obligations remain tied to the bankruptcy process.
That framing avoids two opposite errors. Saying Rad Power Bikes simply went out of business ignores the continuing brand and current sales. Saying nothing changed ignores the bankruptcy, the asset-only transaction, and the uncertainty surrounding pre-bankruptcy customer claims.
Source note: The timeline and owner guidance are based on Rad’s current consumer and warranty materials, CPSC safety notices, bankruptcy-court reporting, and the buyer’s regulatory and transaction disclosures available through August 11, 2026.
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Is Rad Power Bikes out of business?
The original Rad Power Bikes entity filed for Chapter 11 bankruptcy, but the Rad brand did not simply disappear. Its assets were sold through a court-supervised process to Life Electric Vehicles Holdings, and Rad Life Mobility now operates the brand under new ownership.
Will Rad honor a warranty on a bike bought before December 15, 2025?
Do not assume that it will. Rad’s current warranty information says claims for products purchased before December 15, 2025 must be submitted through the bankruptcy process by filing a proof of claim. Rad Life Mobility says it has no obligation to provide warranty or other service for those older purchases, although it may offer services or upgrades at its discretion.
Which Rad batteries are covered by the CPSC warning?
The CPSC identified batteries labeled RP-1304, RAD-S1304Y, and HL-RP-S1304. The warning is battery-specific and should not be generalized to every Rad battery. Owners should check the label and follow the CPSC’s stop-use and disposal instructions.
Can I replace an affected Rad battery with a generic battery?
A generic replacement is not a safe automatic solution. Electrical voltage, connectors, battery-management systems, physical fit, certification, and charging requirements must all be verified for the exact bike and battery system. Do not use an affected battery while searching for a substitute.
The Bottom Line
Bottom line: Rad Power Bikes faced a real shutdown threat and the original company entered Chapter 11, but the brand survived through an asset sale to Life Electric Vehicles Holdings. Rad Life Mobility now operates the brand. Treat pre-December 15, 2025 claims as bankruptcy matters, use the current warranty terms for qualifying post-May 15, 2026 purchases, and check the battery label before riding or charging any Rad bike.
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