Rad Power Bikes reaches deal to sell itself for $13.2M

Core Insights - Rad Power Bikes has agreed to sell itself to Life Electric Vehicles Holdings for approximately $13.2 million following its bankruptcy filing [1] - The auction for Rad Power's assets involved five entities, with Life EV winning the bid that totaled $14.9 million when liabilities were considered [2] - Retrospec placed the second-highest bid at $13 million and is designated as the backup bidder if the deal with Life EV does not proceed [3] Company Performance - Rad Power's valuation peaked at $1.65 billion in October 2021, but the recent bids reflect a significant decline in value [3] - The company has raised a total of $329.2 million according to PitchBook data [3] - Rad Power experienced a surge in sales during the pandemic but faced challenges as demand decreased, leading to layoffs and management changes [6] Industry Context - Rad Power is not alone in seeking bankruptcy protection; other micromobility companies like VanMoof and Cake have also undergone restructurings [4] - The industry has seen a trend of companies struggling post-pandemic, with scooter company Bird also going through bankruptcy [4] - Issues with battery safety have been a concern for Rad Power, with the Consumer Product Safety Commission reporting 31 fires linked to its batteries [6]