Rad Power Bikes has officially found a buyer. Just over a month after entering the bankruptcy process, the once-dominant direct-to-consumer electric bike brand has reached an agreement to sell its assets.
“As part of the bankruptcy process, Rad Power Bikes conducted an asset auction late last week,” a Rad Power Bikes spokesperson explained to Electrek. “The auction resulted in a successful bid, along with a backup bid, for the purchase of certain Rad assets. Any proposed transaction remains subject to court approval, and the sale is not final at this time.”
A small bidding war brought the ultimate sale price up to $13.2 million, with the winning buyer listed as Life Electric Vehicle Holdings, Inc. The company has changed names at least once and appears to be a holding company that both scoops up distressed micromobility brands (like they did a few years ago with Harley-Davidson’s Serial 1 e-bike brand) and claims to build electric bicycles locally in the US, though all of its models seem to have been out of stock for some time and there is no indication of whether sales are currently ongoing.
According to a statement on the company’s website, Life Electric Vehicle Holdings is currently focused on its strategy of acquiring e-bike brands. “Having recently undergone the transition into becoming a publicly traded company, we are in the launching and acquisition phase. Our business model includes the launching, acquisition, and consolidation of multiple brands of e-bikes, e-trikes, e-scooters, and light EV companies to become an industry leader in the American micro-mobility market.”
There are some other caveats to the deal, including that the sale still has to be approved by a bankruptcy judge before it can be finalized. There’s also no indication of whether the winning bidder will continue to operate Rad Power Bikes in its current form.
According to a recent filing on the bankruptcy docket, five different entities participated in an auction for Rad Power Bikes’ assets on January 22. The bidding reportedly opened at $8 million and climbed from there, with Life Electric Vehicle Holdings ultimately emerging as the winning bidder.
Deerfield Beach, Florida-based Life Electric Vehicle Holdings describes itself as a developer, manufacturer, and distributor in the light electric vehicle space.
Coming in just behind was another e-bike brand Retrospec, which submitted a $13 million bid and has been designated as the backup bidder should the primary deal fall through.
It’s a sobering figure compared to Rad Power Bike’s peak valuation of $1.65 billion in late 2021, after raising hundreds of millions of dollars from investors.
It’s also a pattern we’ve seen repeated recently as several electric bicycle brands have run into financial struggles and been forced to shutter operations over the last few years.
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