The Seattle-based e-bike company, Rad Power Bikes, could be forced to permanently close its headquarters, according to a letter sent out to employees last week.
The company filed a Worker Adjustment and Retraining Notification (WARN) with the Washington state Employment Security Department on Friday, as part of “advance written notice of a potential cessation of operations that could occur as early as January 2026,” a company spokesperson told Geekwire.
The filing warned that a shutdown of operations would impact 64 jobs at the company’s headquarters in Seattle, including the CEO, CFO, customer service reps and bike mechanics.
“No final decisions have been made, and these notices are precautionary,” the company’s spokesperson told Geekwire. “Rad’s leadership is actively pursuing all viable options to keep the company operating.”
During the Covid pandemic, Rad Power Bikes became North America’s leading e-bike seller, with stores across nine cities in the U.S. and Canada. In May 2020, Rad bikes faced a 297% spike in demand for its bikes, as the world pivoted to alternative means of travel and exercise. A year later, the company continued to balloon, attracting both a growing workforce and more than $300 million from investors.
However, the company began to scale back in the spring of 2022, laying off the first round of employees. A year later, Rad ceased its business operations in the UK and EU. In a letter to their employees, the company said that it “did not anticipate the sudden drop in consumer demand from Covid-era peaks.” This pandemic-informed boom and bust has further been exacerbated by 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,” the letter this month reads.
“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…