Bicycle Retailer and Industry News - Industry News

Updated tariff timeline: How we got here

Steve Frothingham — Fri, 30 Aug 2019 17:16:53 +0000

UPDATED Sept. 11, 2019

BOULDER, Colo. (BRAIN) — Tariff news is piling up on the industry, making heads swirl from Washington to Long Beach to Boulder.

To help you, and us, keep track, we have prepared a timeline, below. We'll have to keep updating the timeline as things develop. If you have a question, shoot it over to BRAIN’s Steve Frothingham at Sfrothingham@bicycleretailer.com or leave a comment.

Pre-existing tariffs

During the Kennedy administration the import duty on bikes was 30%. But in recent years most complete bikes have been subject to an 11% tariff; the rate for most road bikes is half that. Before the new Section 301 tariff imposed last year (see below), e-bikes had no tariff.

Parts and accessories are generally subject to tariffs between 0-10%. The tariff on pedals, for example, is 8%, while that on pumps is 3.7%.

All the new and proposed tariffs in the news in the last year are in addition to the pre-existing tariffs. So for example the new 25% tariff on Chinese bikes, made official this month, is on top of the 11% tariff most bikes already are subject to, for a total of 36%.

Many missed the news in September 2018, but there was a tariff reduction that month. President Donald Trump signed the Miscellaneous Tariff Bill Act of 2018, which reduced some of these underlying tariffs (in imports from all countries, not just China) without affecting the new Section 301 or Section 232 tariffs. For example, the bill lowered the rate on disc brakes from 10% to 7.5%, and the rate for unicycles went from 3.7% to 0%. It also slightly reduced the tariffs on some cycling shoes.

New and proposed tariffs, in chronological order:

The U.S. tariff on steel and aluminum

Applies to: U.S. imports of raw steel and aluminum from most countries
Rate: 25% on steel, 10% aluminum
Date proposed: March 8, 2018
Date applied: March 23, 2018
Type of tariff: Section 232, related to national security. (There's more on Section 232 tariffs on the Department of Commerce site)

Annual import value of products, 2018: $40 billion
Notable exclusions: Steel from Argentina, Australia, Brazil, and South Korea (Argentina, Brazil and South Korea are limited by import quotas); aluminum from Argentina and Australia (Argentina limited by quota). Under NAFTA, Canadian and Mexican materials were exempt until May 31, 2018.
Impact on our industry: Many U.S. manufacturers tell BRAIN that material costs — even for U.S. made steel and aluminum - have increased significantly. This put them at a disadvantage relative to foreign manufacturers, because only the materials, not completed products, are subject to this tariff. Some U.S. manufacturers favored an increase in tariffs on completed products because it helped reduce that disparity.
Status: Mexico and Canada continue to negotiate new trade agreements in hopes of eliminating the tariffs; with a Canada/US deal announced on May 17. The EU and the U.S. also continue to negotiate on this and other trade issues.
Retaliation: Canada, Mexico, and the European Union each enacted retaliatory measures.

Section 301, List 1 (GPS and bearings)

Applies to: U.S. imports of a wide array of Chinese products, including GPS bike computers and ball bearings
Rate: 25%
Previous tariffs: GPS: 0%; Bearings: 4-10% depending on type.
Date proposed: April 6, 2018
Date enacted: July 6, 2018
Type of tariff: Section 301 (More on Section 301 on the USTR website)
Annual import value of all List 1 products, 2018: List 1 represented $34 billion in imports, out of an original proposal of $50 billion. List 2 (below) made up the $16 billion difference.

Impact on our industry: Caused some GPS makers to move production out of China, usually to Taiwan. Raised costs of U.S.-made components that include Chinese-made bearings, and replacement bearings. Caused some bearing suppliers to move production or assembly out of China.
Retaliation: China announced its own list of U.S. goods subject to new tariffs.
Status: Still in place.

Section 301, List 2 (Chinese e-bikes and motors)

Applies to: An array of Chinese products, including e-bikes and e-bike motors.
Tariff rate: 25%
Previous tariff on e-bikes: 0%
Type of tariff: Section 301
Annual import value of all List 2 products, 2018: $16 billion
Date proposed: June 20, 2018
Date applied: Aug. 23, 2018

Impact on our industry: Several manufacturers, including Trek and Pedego, testified against the proposal in Washington. The tariff had more effect on lower-priced e-bikes sold online and other channels. Sales statistics show the e-bike remained the fastest growing segment in the industry, despite the tariffs.
Retaliation: China announced a second round of U.S. goods subject to retaliatory tariffs.
Status: Still in place. Bike trade groups and brands requested exemptions, but the USTR denied those requests in January.

Section 301, List 3 (Chinese bikes, parts and accessories)

Applies to: Wide array of Chinese products, including most complete bikes and bike parts and accessories, plus other items the bike industry uses and sells, like tools and water bottles.
Notable exceptions: Helmets and lights were exempted for safety reasons. Cycling apparel and shoes also are not included. A variety of bike parts and accessories that are not elsewhere specified or included in the HTS import codes (NESOI, in importer jargon) fall under the 8714.99.8000 code. That code was NOT included in this round, but items under that code are subject to a pre-existing 10% duty. This includes about 40 types of products, including pump clips, bike radios and horns, kickstands, wide-angle reflectors, seatposts, toe clips, spoke reflectors and more. HTS 8714.99.8000 is included in List 4 (see below).
Tariff rate: 10% starting September 2018, was set to increase to 25% on Jan. 1, 2019, but the increase was delayed. Now set to increase to 25% on imports that arrive after June 1.
Previous tariffs: The 10% and 25% tariffs are in addition to existing tariffs on bike products, discussed above.
Type of tariff: Section 301
Annual import value of all products on List 3, 2018: $200 billion.
Date proposed: July 17, 2018
Date applied: 10% took effect Sept. 24, 2018. It increased to 25% on May 10, 2019, applying to imports that arrive after June 1.

Despite the notable exceptions, this is a big, wide ranging list of bike stuff.

Impact on our industry: Despite the notable exceptions mentioned above, this is a big, wide ranging list of bike stuff. Evidence: In 2018 the bike industry imported at least $1.1 billion in products on this list from China, representing half the industry’s imports. Since September, the 10% tariff has led to wholesale price increases of around 5% on these products, retailers said. Suppliers tell us efforts to re-source products and the uncertainty has been costly. The increase to 25% is expected to cause significant wholesale and retail price increases.
Retaliation: China is running out of U.S. imports to hit with new tariffs in response. After the U.S.’s 10% increase in September, China announced new tariffs of 5-10% on $60 billion in U.S. exports to the country, including agriculture products and natural gas. After the announced increase to 25% in May, China said it would increase tariffs on $60 billion in other U.S. imports on June 1.
Status: Negotiations continue.

Section 301, List 4 — (Almost everything else from China)

Applies to: U.S. imports of Chinese goods, including most or all of the bike products not included in List 2 or List 3.
Tariff rate: up to 25%
Type of tariff: Section 301
Annual import value of all products on List 4, 2018: $300 billion.
Date proposed: May 13, 2019
Date to be enacted: Any time after June 24 in any amount up to 25%, on top of the regular rate of duty.

Impact on our industry: Adds in most or all bike-related items that were not in List 3, including lights, helmets, unspecified parts and accessories, apparel and footwear. The industry is planning to submit requests to exclude bicycle products from this round of tariffs.

Status: A public hearing was held June 17 at which the bicycle industry was represented. On June 29, at the G20 summit in Japan, Trump said he and Chinese President Xi had agreed to a truce and that the U.S. would not impose the new tariff on List 4. On August 1, Trump said Xi had not followed through in promises made in June and said List 4 would be hit with a 10% tariff on Sept. 1.

Status update Aug. 13, 2019: Trump announced that some products on List 4 will get a holiday shopping season reprieve and not get hit with the new tariff until Dec. 15. That included cell phones, laptops — and balance bikes. However, all other bike products on List 4 were set to still receive the 10% tariff on Sept. 1. That included helmets and lights, which were exempt from previous rounds for safety reasons.

Status update Aug. 30, 2019: The USTR announced the new tariff on List 4 would be 15%, not 10%, after China announced retaliatory measures. The 15% would be imposed on List 4a on Sept. 1 and List 4b on Dec. 15. The USTR also said the 25% tariff on Lists 1,2, and 3 would increase to 30% on Oct. 1, 2019.

Status update Sept. 11, 2019: Trump tweeted that the increase on Oct. 1 would be delayed until Oct. 15 as a good will gesture.

Section 301, EU list

Applies to: U.S. imports of products from the European Union, including some bike products.
Tariff rate: Up to 100%
Type of tariff: Section 301
Annual import value of all products, 2018: $11.5 billion
Date proposed: April 8, 2019
Public hearing: May 15-16, 2019

Impact on our industry: Applies to imports of EU parts, including sprockets and hubs.
Retaliation: The EU has proposed retaliation that would include some sprockets and hubs from the U.S.
Status: Matt Moore, representing the BPSA, was scheduled to speak at a public hearing about this proposal on Thursday, May 16. Comments were being accepted until May 28 at regulations.gov/docket?D=USTR-2019-0003.

Editor's note: We've corrected our reference to the import duty on bikes during the Kennedy administration. The correct figure is 30%, not 50% as we had said. Thanks to James Longhurst, Ph.D., an associate professor in the history department at the University of Wisconsin La Crosse for nicely pointing out our mistake.

Industry veteran Brad Hughes dies at 71

Steve Frothingham — Tue, 06 Jan 2026 21:31:14 +0000

CAMARILLO, Calif. (BRAIN) — Industry product developer, executive and consultant Brad Hughes died on New Year’s Eve at 71.

Hughes worked at brands in including Schwinn, Diamondback, Cannondale, Raleigh, Bell Sports and others. Later in his career he was a senior advisor at the Human Powered Solutions consultant group, and formed his own consulting business. He continued to work part-time at a nearby bike shop because he didn’t want to retire fully, his daughter, Kelly Hughes Evans, told BRAIN this week.

Hughes grew up in the Chicago area and after earning a teaching credential at Northeastern Illinois University, he decided to start a bike shop instead of teaching. He started working for Schwinn in Chicago in 1973 and was with Schwinn until 1992 when he moved to Camarillo to work for WSI, the owner of Diamondback.

Besides Kelly, Hughes leaves a son, Kurt, and five young grandchildren. “He was a very involved grandfather; they are heartbroken,” Kelly Hughes Evans said. Hughes also leaves ex-wife Linda Hughes, a niece and a nephew.

A memorial will be held Saturday, Jan. 24 at 10 a.m. at the Chapel of the Hills-Conejo Mountain Funeral Home, 2052 Howard Road, in Camarillo. More information: conejomountain.com/obituaries/Bradley-Erwin-Hughes.

Wheels Mfg. acquires Mirrycle Corporation

DeanYobbi — Tue, 06 Jan 2026 19:44:30 +0000

LOUISVILLE, Colo. (BRAIN) — Wheels Manufacturing acquired accessory manufacturer Mirrycle Corporation, which includes the Incredibell brands. Financial details, including the purchase price, were not released.

A Wheels Manufacturing spokesperson told BRAIN Mirrycle will continue independent of Wheels with no leadership changes nor workforce reductions planned. Both company's operations will be consolidated into the Louisville offices.

"The priority is a smooth transition with no disruption to retailers (availability, fulfillment, warranty/service)," the spokesperson said. "We'll share timing details as they firm up."

The Boulder, Colorado, based Mirrycle Corporation began in 1979 when the handlebar-mounted Original Mirrycle Mirror was developed. In 1987, it introduced the Incredibell line of bells.

The Flagg Bicycle Group, which is led by QBP founders Steve Flagg and his wife, Mary Henrickson, purchased Wheels Manufacturing in 2019. Wheels Manufacturing manufactures service and repair parts, including derailleur hangers, bottom brackets, and specialty tools. The Flagg Bicycle Group also owns Terry Bicycle and Workstand (formerly named SmartEtailing).

"Mirrycle and Incredibell fit naturally into what we already do," said Wheels Manufacturing’s president, Dave Smith. "Both brands share our belief that small details make every ride better, whether that's a perfectly aligned derailleur hanger or a clear ring from a bell that keeps everyone on the path safer."

Michael Forte buys The Bike Shop List from Georger Data Services

Steve Frothingham — Tue, 06 Jan 2026 16:07:12 +0000

TUCSON (BRAIN) — Industry veteran Michael Forte announced his acquisition of The Bike Shop List, a source of bicycle shop locations and brand information across North America. Forte purchased the platform from Christopher Georger, who founded Georger Data Services over 25 years ago and launched The Bike Shop List in 2018.

Forte resigned his position as North America Planning, Strategy and Ecosystem Leader at Specialized Bicycle Components as of Jan. 2. Forte’s career, spanning over four decades in the bicycle industry, includes leadership roles at Rossignol Group, Felt Bicycles and Giant Bicycle.

Forte got his start in bicycle retail in 1985. He has served on the Bicycle Product Suppliers Association and PeopleForBikes Boards of Directors.

“The Bike Shop List has been a trusted tool for connecting the cycling industry for years,” said Forte. “I look forward to building on Christopher’s vision and ensuring that shops, brands and riders have access to the most accurate and comprehensive information available.”

The Bike Shop List was founded by Christopher Georger in response to supplier demand for an accurate retailer database. Under the Georger Data Services brand, Georger maintained a database of retailers identified by brands carried to help suppliers choose effective markets and locations for new stores.

“I spent decades establishing my Bike Shop List business,” Georger said. “My long-term friend and colleague Michael was my first choice to carry forward my work and serve the industry’s needs for current, accurate information.”

Forte said that under his leadership, The Bike Shop List will expand its reach and enhance its services for retailers, distributors and cycling enthusiasts.

Longtime Park Tool mechanic, how-to video host Calvin Jones retiring

DeanYobbi — Tue, 06 Jan 2026 15:38:27 +0000

ST. PAUL, Minn. (BRAIN) — Park Tool's director of education, Calvin Jones, is retiring after 28 years with the company. "Moving on from Park Tool, there are some educational projects that I would like to be part of," Jones said. "Plus, I am looking forward to focusing more on my riding and figuring out when to use this dropper post."

Jones developed a loyal following on Park Tool's YouTube channel, which has more than 916,000 subscribers and 13 million annual views. Working with Park Tool's creative team, Jones has hosted hundreds of free how-to videos in the past 15 years.

Other projects Jones contributed to include:

The Repair Help section of parktool.com, with a library of nearly 200 detailed how-to guides.
The Park Tool School, a full set of curriculum designed for teaching bicycle maintenance in a classroom setting, first published in 2000.
The Big Blue Book of Bicycle Repair, a complete bike maintenance handbook now in its fourth edition.
The Park Tool Tech Summit, a recurring series of in-depth seminars and lectures for professional mechanics from 2009 to 2013.

Jones, whose first bike shop job was in 1973, also was team mechanic for USA national teams, mechanics instructor at the U.S. Olympic Training Center, and chief instructor at Barnett's Bicycle Institute.

"I think the thing I admire most about Calvin is that to this day he lives and breathes what he teaches," said Eric Hawkins, Park Tool owner, CEO and chief mechanic. "He's passionate about the science of bikes and is a gifted teacher who can clearly explain even the most complex concepts. Through his writings, videos, and personal interactions, he's helped millions understand how their bike works and how to best keep it working. It's been an amazing run, and now, nearly 29 years later we owe a lot to Calvin for his unique ability to demystify bike repair and maintenance."

Jones will continue to be involved with the Stillwater chapter of the Minnesota Cycling Association and maintain his seat on the board for Project Bike Tech. He will periodically contribute to Park Tool video projects and will attend iceBike in London and Frostbike in Minneapolis this year.

Cannondale founder Joe Montgomery passes away

DeanYobbi — Mon, 05 Jan 2026 15:41:25 +0000

UPDATED with service information.

WILTON, Conn. (BRAIN) — Cannondale founder Joe Montgomery passed away Friday, his son Scott Montgomery confirmed in a LinkedIn post Sunday. Joe Montgomery was 86.

A private service will be held this weekend in Florida for family members. The family is considering a broader memorial at a later date, with details to be announced.

Cannondale started in 1971 in Wilton and became a company known for innovation, from embracing aluminum and carbon fiber manufacturing when others were wedded to steel, to the Headshok suspension fork, and to the single-sided Lefty fork.

"So we ditched the rulebook, cut a new path and created a new way," according to Cannondale, on its "The Story of Cannondale Bikes" webpage. "From a Connecticut workshop we set about revolutionising cycling for the better, for everyone. We assumed nothing, we iterated and reiterated and from day one we have worked on pioneering materials, ergonomics and technology, and we haven't looked back since."

And Montgomery led the way.

Cannondale declared bankruptcy and was sold in 2003 to private equity firm Pegasus Capital Advisors for about $58 million. In 2008, Dorel Industries acquired the brand for between $190 million and $200 million. In 2022, Dorel Industries completed its sale of Dorel Sports — which included Cannondale, Schwinn, GT, Mongoose and other bike brands — to Pon Holdings, for $810 million.

Scott Montgomery was Cannondale's co-president and vice president from 1984 to 2003 and was instrumental in starting Cannondale Japan and Cannondale Europe.

In addition to Scott, survivors include sons Michael, Luke, and John, and daughter Lauren. Grandchildren are Haley, Clyde, and William. Joe spent his retirement years with wife Celia in Vero Beach, Florida.

PGW announcement raises questions about Fuji, SE and Tuesday distribution

Steve Frothingham — Mon, 22 Dec 2025 17:02:11 +0000

LOS ANGELES (BRAIN) — An announcement by Pacific Glory Worldwide last week has raised questions about how Fuji, SE and Tuesday bikes will be distributed in the U.S. next year.

PGW, which is owned by Taiwan-based manufacturer Ideal Bike, announced it is now distributing those brands to U.S. dealers. The company's U.S. operations are led by Anthony Mikrut, an industry veteran who told BRAIN that PGW will use two third-party logistics warehouses to service dealers. Mikrut is hiring staff and said the company's U.S. employees will work remotely; Mikrut is based in Colorado.

The announcement said PGW will bring brand management and logistics under one team. "Retailers can expect better forecasting, stronger brand stories, and direct access to marketing programs designed specifically for the shop level," the release said. Mikrut told BRAIN that PGW will rely on dealer sales exclusively, with no consumer-direct sales of its bikes.

Philadelphia's BikeCo., however, has been the brands' distributor since soon after Advanced Sports Enterprises — the owner of distributor ASI and the Performance retail chain — went bankrupt in 2018. BikeCo's president. Frank Zimmer, declined to talk to BRAIN about the situation, but emails that Zimmer has sent to BikeCo dealers recently said BikeCo is talking to PGW about how the companies will co-exist next year.

"(W)e are currently in discussions with PGW to determine what the future distribution model for Fuji, SE, and Tuesday will look like in the North American market and what role BikeCo will choose to play in this model," Zimmer wrote to dealers in a Dec. 18 email.

The email clarified that BikeCo is continuing to sell its current inventory of SE, Fuji and Tuesday bikes. It also said BikeCo expects to receive some shipments of those brands in the first quarter of 2026.

Importantly, PGW, as a part of the Ideal Bike Co., owns the Fuji, SE, and Tuesday bike brands. However BikeCo owns the Breezer brand, and Zimmer's letters indicated that BikeCo is looking to add other brands to its lineup, which will be announced after the first of the year. He said the Breezer line is getting a major refresh for 2026.

Zimmer's letters also mentioned what several BikeCo dealers have told BRAIN: That the distributor has had difficulty obtaining inventory in the last two seasons, even though SE bikes have been in great demand. Zimmer's letters said shifting production due to tariffs caused delays and extra costs while BikeCo's "primary factory partner" (apparently referring to Ideal) had faced financial difficulties, in part due to the bankruptcy of several customers. Public filings show that Ideal stood to lose millions of dollars due to the VanMoof bankruptcy in 2023 and the YT Industries insolvency this year.

Ideal has a net loss of NT$360 million ($11.4 million) in the first three fiscal quarters this year. In a presentation to investors earlier this month, Ideal said it would begin dealer-direct sales of the SE, Fuji and Tuesday brands in the U.S. in 2026 (see the screenshot from the investor presentation).

BikeCo was formed after the ASE bankruptcy, when Tiger Group, a liquidation company, and some Hong Kong-based investors formed it to distribute the brands. In 2019 Tiger Group sold its share in BikeCo to the other investors.

Screenshot of a slide from a recent Ideal Bike investor presentation.

File Attachment:

PGW press release PDF

Electric Bike Co. assets sale includes IP, custom-bike ordering site, tooling and more

Steve Frothingham — Wed, 17 Dec 2025 23:27:21 +0000

(BRAIN) — The assets of Electric Bicycle Co., which filed for Chapter 7 bankruptcy in October, are being sold this winter. They include the brand and other intellectual property, including a website that allows consumers to order custom e-bikes. The sale also includes inventory and manufacturing equipment.

EBC sold more than 25,000 e-bikes during its time in business, which means there is continued market for repair and replacement parts, noted Laura Belmar, who is managing the asset sale.

The assets include the brand name and website domain name, which the company said retain value, as does a dealer network of more than 100 shops and tour companies. The IP includes product designs, colorways, the online customization engine, supplier relationships, customer lists, past-order history and marketing assets.

The company's assembly equipment, paint shop, tooling, jigs, fixtures, wheel-building tools, completed inventory, and work-in-progress inventory are also being sold.

The seller is now sharing details to potential buyers who execute a non-disclosure agreement. Indications of interest to buy will be due in early January and binding bids will be due in mid- to late January. If an auction is necessary with will take place in early February, with court approval and closing expected in mid- to late February.

Interested buyers can contact laura@oldpostco.com for details.

EBC's dealer program includes a dealer wall that shows custom options.

Rad Power Bikes has a new CEO, its fourth in three years

DeanYobbi — Wed, 17 Dec 2025 18:18:47 +0000

SEATTLE (BRAIN) — Rad Power Bikes has a new CEO as it trims its executive roster during the Chapter 11 bankruptcy proceedings, according to a brand spokesperson.

Chief Financial Officer Angelina "Angy" Smith has been elevated to the position after joining the company in April. She previously was CFO of TrovaTrip, a group travel company, and Athena Consumer Acquisition Corp., a special purpose acquisition company that merged with Next.e.Go Mobile.

This is Rad Power's fourth CEO in the past three years, following founder Mike Radenbaugh (2007-2022), Phil Molyneaux (2022-25), and Kathi Lentzsch, who was hired in March.

Rad Power's filing is in advance of completing a sale of the company and less than a month after it said it could not afford a recall on some of its older lithium-ion batteries that the Consumer Product Safety Commission deemed unsafe.

It listed estimated assets at $32.1 million and estimated liabilities at $72.8 million. Its inventory of e-bikes, spare parts, and accessories is listed at $14,226,874.73. Its top unsecured claim is with the U.S. Customs and Border Protection for $8.4 million in tariffs.

Gross revenue in the past two years fell 52%, from $129,828,790.57 on Dec. 31, 2023, to $63,326,482.86 at the time of the filing.

Rad Power Bikes files for bankruptcy protection

DeanYobbi — Tue, 16 Dec 2025 16:29:38 +0000

UPDATED with Rad Power Bikes comment.

SEATTLE (BRAIN) — Rad Power Bikes filed for Chapter 11 bankruptcy protection Monday in advance of completing a sale of the company and less than a month after it said it could not afford a recall on some of its older lithium-ion batteries that the Consumer Product Safety Commission deemed unsafe.

Filed in the U.S. Bankruptcy Court for the Eastern District of Washington, Rad Power Bikes listed estimated assets at $32.1 million and estimated liabilities at $72.8 million. Its inventory of e-bikes, spare parts, and accessories is listed at $14,226,874.73.

Top unsecured claims are:

U.S. Customs and Border Protection for tariffs ($8,363,749), Bangkok Cycle Industrial Co. Ltd. ($5,353,674), Jinhua Vision Industry Co., Ltd. ($1,414,356), and Fuji-TA Fushida Group Area ($1,223,881) for trade; Commerce Insurance ($1,138,000) and Lisa Gore ($3,200,000) for subrogation; Steve Jay ($1 million) and Susan Luck ($1 million) for damages.

Equity holders are founder Mike Radenbaugh (41.3%), VCVC V LLC (6.6%), Durable Capital Master Fund LP (5.8%), along with other minority holders (46.3%).

"Rad Power Bikes has navigated an extraordinary period of challenge and change, even as our riders and community have continued to show up for us in powerful ways," a Rad Power spokesperson told BRAIN. "As we work to secure a sustainable future for the Rad brand, Rad has filed for Chapter 11 protection as part of a process to complete a sale of the company within the next 45-60 days.

"This step allows us to keep operating in the ordinary course of business while we pursue the best possible outcome for the people who rely on Rad every day. Our goal is to keep the company intact and preserve the relationships we have built with riders, vendors, suppliers, and partners.

"We are not giving up. We remain deeply committed to our customers and community, and we are focused on doing everything we can to strengthen the future of the Rad brand. We are grateful for the continued support of our riders, vendors, and retail partners as we work through this moment and toward what comes next."

The CPSC issued the warning because it said the lithium-ion battery on some older models can unexpectedly ignite and explode, especially when the battery or harness has been exposed to water and debris. Rad Power Bikes did not agree to "an acceptable recall," according to the CPSC, and the brand told the agency that given its financial situation, it can't offer replacement batteries or refunds to consumers.

In early November, Rad Power told Washington state officials that it would possibly lay off 64 employees in January and could shut down if additional funding is not secured.

It's been a dizzying downfall for the brand that in October 2021 announced a $154 million financing round that brought its total investment amount to $329 million since its inception in 2007. Since then the brand has had several personal liability lawsuits, layoffs, and management changes.