Life EV has completed a court-approved acquisition of Rad Power Bikes, granting a second life to the troubled e-bike brand.
The Florida-based Life EV now owns Rad’s brand, intellectual property, inventory and certain unspecified operating assets, and will continue to operate as Rad Power Bikes in the US, with plans to expand to “select key markets.”
Rad’s new owner has committed to honoring certain warranties and gift cards purchased prior to the acquisition, and says new bikes will be built in the US going forward. Life EV will adopt a Foreign Trade Zone (FTZ) structure for its manufacturing operations, allowing it to take advantage of special domestic customs procedures when sourcing parts from global suppliers.
“Rad Power Bikes has helped define the e-bike category in North America with its innovative products and passionate rider community,” said Life EV CEO, Rob Provost. “Respecting and preserving that legacy – its brand, vision, and leadership – is foundational to this acquisition. Together, we will build on that trust and create new opportunities for riders nationwide.”
The completed acquisition marks the end of a turbulent period for Rad. Back in December, the company was forced to file for Chapter 11 bankruptcy after the Consumer Product Safety Commission (CPSC) warned Rad’s customers to “immediately stop using” some of its e-bike batteries due to a serious fire hazard. At the time, Rad said it couldn’t afford to recall the at-risk batteries.
Less than two months later, in what can only be described as a strange twist of fate, a fire broke out at a Rad Power Bikes retail store warehouse in Huntington Beach, California. “We’re working with local authorities to review a thermal incident that occurred at our Huntington Beach store Sunday evening,” a Rad Power Bikes spokesperson told Engadget at the time. “The incident was contained and happened while the store was closed. The cause of the fire has not been confirmed.”
This article originally appeared on Engadget at https://www.engadget.com/transportation/rad-power-bikes-gets-a-new-owner-pledge-to-build-bikes-in-the-us-144641940.html?src=rss
