Rad Power Bikes may close soon

[harryS]

I read that the winning bid for Rad ebikes was $13.2 million. The winner gets to wipe out the debt that RAD owes, but will still be liable for any future lawsuits, To think that investors put over $330 million into the company.

 

[harryS]

Stuff I never liked about Rad included the early bikes with direct drive hubmotors, and all the fat tire models. I did like their commitment to battery safety, although early results don't seem too good,

 

[Chazmo]

Thanks for the pointer to the article, @harryS . Any idea what this means?:
"When accounting for Rad Power’s liabilities, the total value of the bid is $14.9 million."

 

[rayray]

Thanks for the pointer to the article, @harryS . Any idea what this means?:
"When accounting for Rad Power’s liabilities, the total value of the bid is $14.9 million."

The winning bidder is assuming at least some of Rad’s debt, in the amount of $1.7M, as well as warranty claims.

 

[sc00ter]

I think that most of the trust in the Rad name has eroded. The new owner might just rebrand the product for future sales. I did read that Retrospec was one of the bidders. They have nice products and a good dealer network already setup. That would have been interesting.

 

[Chazmo]

The winning bidder is assuming at least some of Rad’s debt, in the amount of $1.7M, as well as warranty claims.

Ah, I see. Thanks, Ray. They just added that portion of the debt to the offer (seems kind of weird to me) to calculate what the winning bidder is actually going to pay.

 

[harryS]

News reports had RAD's unpaid balance sheet around $40M, so I would say their creditors are getting back 1.7/40 or less than a nickel on the dollar on average.

 

[Rás Cnoic]

Interesting deep dive into the e bike start ups failures:

 

[stompandgo]

A good analysis of three e-bike manufacturers, two of which are coming out of bankruptcy, with the last one just starting the process. I found it interesting that the two who are on their way back have discovered the value of the LBS and are no longer going to be DTC-only.

 

[Stefan Mikes]

 

[Gionnirocket]

A good analysis of three e-bike manufacturers, two of which are coming out of bankruptcy, with the last one just starting the process. I found it interesting that the two who are on their way back have discovered the value of the LBS and are no longer going to be DTC-only.

Nice video... but as I understood it, Cowboy not selling DTC and only thru LBS was an assumption.

 

[stompandgo]

I thought they said DTC and LBS, primarily because of the service and warranty nightmare they created without an LBS infrastructure. I could be wrong.

 

[Gionnirocket]

From what I gathered Vanmoof has gone to LBS sales/service.
Cowboy was still in the middle of getting their act together and he assumed they were going to follow Vanmoof's lead.
Rad is still too close to crashing to have any idea on how they'd land.