Rad Power Bikes is shutting down retail stores in Vancouver, B.C., and St. Petersburg, Fla., on Friday as the embattled electric bike manufacturer deals with its ongoing bankruptcy proceedings.
The Seattle-based company confirmed to GeekWire that seven stores will remain open: Seattle; Berkeley, Huntington Beach, Santa Barbara, and San Diego, Calif.; Denver; and Salt Lake City.
A post on Reddit said customers were notified of the closure in Vancouver via a recent email from Rad. The store first opened in October 2020, according to the company.
“The end of an era,” one Redditor commented. “It was always nice to know if you had any issues with your bike, there was a shop to take it [to]. The staff there were incredibly nice and always on the ball. Wish them all the best.”
“I’m sad to see it go,” said another. “Customer service at the Vancouver location was a selling point for me buying a Rad. Best wishes for all of the staff!”
Rad Power Bikes filed for Chapter 11 bankruptcy protection in December following surprising news in November that the once hard-charging startup was fighting for survival as it faced “significant financial challenges.”
In a letter to employees about its struggles, Rad said that in the event the company was forced to close, it would be required to cease operations on Jan. 9, or within 14 days thereafter. A filing with the Washington state Employment Security Department at the time said a shutdown would impact 64 jobs.
The company previously said it’s been working to find a buyer to keep the popular brand alive.
Launched as a direct-to-consumer brand in 2015, Rad saw big demand amid the pandemic as more people bought e-bikes. Its sales and workforce surged and it raised more than $300 million from investors in 2021. The company was valued at $1.65 billion that year, according to PitchBook.
But a series of missteps and macroeconomic challenges led to more than seven rounds of layoffs and a remarkable downfall for the company which billed itself as the largest seller of e-bikes in North America.
Related:
- New CEO leading Rad Power Bikes in the midst of e-bike seller’s bankruptcy proceedings
- Rad Power Bikes’ biggest unpaid bill is $8.3M to U.S. Customs, as tariffs squeeze the industry
- The rise and fall of Rad Power Bikes: From breakout success to the brink of shutdown
Read the full article here
