Life EV has completed its court-approved acquisition of Rad Power Bikes, giving a second life to the struggling e-bike brand.
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 United States, with plans to expand into “certain key markets.”
The new owner of Rad has engaged to honor certain warranties and gift cards purchased prior to acquisition, and says new bikes will be built in the United States in the future. Life EV will adopt a Free Trade Zone (FTZ) structure for its manufacturing operations, allowing it to take advantage of special national customs procedures when sourcing parts from global suppliers.
“Rad Power Bikes has helped define the e-bike category in North America through its innovative products and community of passionate cyclists,” said Rob Provost, CEO of Life EV. “Respecting and preserving this heritage – its brand, its vision and its leadership – is essential to this acquisition. Together, we will build on this trust and create new opportunities for riders nationwide.”
The completed acquisition marks the end of a turbulent period for Rad. Last December, the company was forced to file for Chapter 11 bankruptcy after the Consumer Product Safety Commission (CPSC) has warned Rad 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 risky batteries.
Less than two months later, in what can only be described as a strange twist of fate, a fire broke out in the warehouse of a Rad Power Bikes retail store in Huntington Beach, California. “We are working with local authorities to look into 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 occurred while the store was closed. The cause of the fire has not been confirmed.”
This article was originally published 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
