Rad Power Bikes, the Seattle-based e-bike manufacturer once valued at $1.65B, has reached an agreement to sell its assets for $13.2m following its recent bankruptcy filing. The sale comes roughly one month after the company entered Chapter 11 protection in December 2025.‍

Auction Details

According to court filings, the auction, held on January 22, 2026, involved five qualified bidders. The process was run by Hilco Corporate Finance, which was appointed to manage the sale after the company filed for bankruptcy in December.

Life Electric Vehicles Holdings Inc. (Life EV), a South Florida-based company, emerged as the winning bidder with an offer of $13.2m. When including the assumption of various liabilities, the total value of the Life EV deal reaches approximately $14.9m

Southern California's Xander Bicycle Corporation, which operates under the Retrospec brand, submitted the backup bid of $13m. If the sale to Life EV does not close, the assets would be sold to Retrospec for $13m, with a similar total value of about $14.6m.

Assets included in the sale

Under the terms outlined in the auction notice, Life Electric Vehicles will acquire a broad set of Rad Power Bikes’ operating assets.

• All remaining Rad Power Bikes inventory
• Intellectual property including trademarks and patents
• Accounts receivable
• Company equipment, computers, and software
• Selected contracts and leases

The buyer will also assume certain liabilities tied to the acquired assets. These include warranty claims, inventory currently in transit, gift cards issued by Rad Power Bikes, and accrued paid time off for employees who may be hired by the buyer.

Cash is excluded from the sale.

The transaction is structured as a sale “free and clear” of existing claims, meaning the buyer will not inherit liabilities beyond those specifically listed in the purchase agreement.

A hearing to approve the sale to Life EV is scheduled for January 30, 2026. The transaction requires final authorization from the bankruptcy judge.

If approved, the parties expect the sale to close by February 13, 2026, with a final deadline no later than February 27, 2026, unless both sides agree to extend the timeline

Context and Company Trajectory

The auction concludes a rapid decline for a company once valued at $1.65B in 2021. Founded as a direct-to-consumer brand, Rad Power Bikes saw explosive growth during the COVID-19 pandemic. It raised over $329m in venture capital and became one of North America's best-known e-bike brands.

As pandemic-driven demand cooled, the company faced significant financial challenges. Its bankruptcy filing in December 2025 listed assets of $32.1m against liabilities of $72.8m. Revenue had fallen from $129.8m in 2023 to $63.3m for the first eleven months of 2025.

The company's 20 largest unsecured creditors, disclosed in bankruptcy schedules, are owed more than $17m. They include overseas manufacturing partners, logistics firms, insurance companies, and the U.S. Customs and Border Protection for unpaid tariffs.

What follows

Court filings do not yet clarify whether the Rad Power Bikes brand will continue under new ownership or how many employees may be retained following the sale.

For now, the asset auction marks the most significant step in the company’s bankruptcy process, determining who will control its remaining inventory, technology, and intellectual property as the case moves toward resolution.

If approved, Life EV will gain control of Rad Power Bikes' brand and assets. The agreement gives Life EV until March 6, 2026, to decide which of Rad's existing contracts and store leases it wishes to assume.