[Digital Today reporter Jinju Hong] U.S. electric bicycle brand Rad Power Bikes has found a new potential buyer about a month after entering bankruptcy proceedings.

On Jan. 27, electric vehicle outlet Electrek reported that Rad Power Bikes held an asset auction last week as part of the bankruptcy process. In the auction, the company selected a winning bidder and a backup bidder for certain assets. A company spokesperson said the auction produced a winning bid, but all proposed transactions require court approval and are not yet final.

According to bankruptcy-related documents recently filed with the court, the auction held on Jan. 22 started at $8 million and, after limited bidding, the final sale price was set at up to $13.2 million. The winning bidder is U.S. micromobility company Life Electric Vehicle Holdings, Inc.

A total of 5 entities took part in the asset auction. Retrospec, another e-bike brand, offered $13 million and was selected as the backup bidder, gaining priority negotiating rights if the initial deal falls through.

Life Electric Vehicle Holdings, the winning bidder, describes itself as a developer, manufacturer and distributor in the light electric vehicle (LEV) sector. It previously acquired Harley-Davidson's Serial 1 e-bike brand.

Some in the industry have also raised doubts about how actively the company has continued sales and production after acquiring the brand. Some models are currently out of stock for extended periods, and it is not clearly confirmed whether sales are actually being made.

According to the company's website, Life Electric Vehicle Holdings has focused on e-bike brand acquisition and integration strategies since recently converting into a listed company. The company said, "To become a leader in the U.S. micromobility market, we are launching, acquiring and integrating e-bike, electric trike, electric scooter and light electric vehicle brands."

The transaction must also receive final approval from the bankruptcy court. It is unclear whether Rad Power Bikes will keep its current brand and business structure after the acquisition. The industry says it cannot rule out the possibility of brand downsizing, a product lineup overhaul and changes in operating methods.

The sale price is a sharp drop from late 2021, when Rad Power Bikes raised major investment after being valued at about $1.65 billion. The collapse of Rad Power Bikes, once regarded as North America's largest direct-to-consumer (D2C) e-bike brand, is being seen as a case symbolising a broader downturn in the e-bike industry, which has struggled with slowing demand after the COVID-19 pandemic, inventory burdens and a worsening fundraising environment.