Articles tagged with "bankruptcy"
Rad Power Bikes reaches deal to sell itself for $13.2 million
Rad Power Bikes, an electric bike company, has agreed to sell itself to Life Electric Vehicles Holdings (Life EV) for approximately $13.2 million, shortly after filing for bankruptcy. The sale followed an auction with five bidders, where Life EV emerged as the winner with a bid totaling $14.9 million when liabilities are included. Retrospec, another e-bike company, was the backup bidder with a $13 million offer. This valuation is a significant drop from Rad Power’s peak valuation of $1.65 billion in October 2021. The acquisition requires approval from the bankruptcy judge. Life EV, based in Florida, is a developer and distributor in the light electric vehicle sector, though most of its own electric bikes were sold out at the time of reporting. Rad Power Bikes experienced rapid growth during the pandemic but later faced challenges including multiple layoffs, CEO changes, and safety issues related to older batteries that reportedly caught fire, with 31 incidents reported to the Consumer Product Safety Commission (C
energyelectric-bikesmicromobilitybattery-safetyelectric-vehiclesbankruptcytransportation-technologyLuminar founder Austin Russell agrees to accept subpoena in bankruptcy case
Luminar founder and former CEO Austin Russell has agreed to accept an electronic subpoena for information from his phone related to Luminar’s ongoing bankruptcy case. Under the terms of a recent court filing, Russell has seven days to file a motion to quash or object to the subpoena; if he does not, he must comply within 14 days. This agreement follows earlier accusations from Luminar’s lawyers that Russell had been evading the subpoena by refusing to accept process servers at his Florida residence. Russell had previously withheld his phone due to concerns over protecting his personal data, but the parties have now agreed to negotiate specific measures to safeguard his privacy. Luminar filed for bankruptcy in December after losing key contracts with automakers like Volvo and Mercedes-Benz, and facing stiff competition from Chinese lidar companies. The company recently struck a deal to sell its lidar assets to Quantum Computing Inc. (QCI) for $22 million and is also attempting to sell its semiconductor division to QCI for $110 million. An auction is
robotlidar-technologyautonomous-vehiclessemiconductorbankruptcytechnology-startupsAI-labsLuminar lines up $22 million bidder for its lidar business
Luminar, a lidar technology company that filed for Chapter 11 bankruptcy in December 2025, has agreed to sell its lidar business to Quantum Computing Inc. for $22 million, subject to higher bids by a deadline on Monday. This sale follows Luminar’s plan to sell its semiconductor subsidiary to the same buyer for $110 million. Both transactions require approval from the bankruptcy court in the Southern District of Texas. Quantum Computing Inc. has been named the “stalking horse bidder,” setting a minimum price to discourage low offers. Luminar aims to expedite the bankruptcy process with support from its largest creditors, primarily financial institutions. The $22 million stalking horse bid marks a dramatic decline from Luminar’s peak valuation of approximately $11 billion in 2021, a period when the company was expected to secure large-scale contracts with automakers like Volvo, Mercedes-Benz, and Polestar—deals that eventually fell through. Austin Russell, Luminar’s founder and former CEO, has shown interest in bidding
robotlidarautonomous-vehiclessensorsquantum-computingbankruptcyautomotive-technologyLuminar claims founder Austin Russell is dodging a subpoena in the bankruptcy case
Luminar, the lidar technology company, alleges that its founder and former CEO Austin Russell has been evading subpoenas and withholding company-owned devices needed for a legal investigation amid Luminar’s Chapter 11 bankruptcy proceedings. Since Russell’s resignation in May following an ethics inquiry, Luminar has sought to recover company-issued equipment, successfully retrieving six computers but still pursuing his company phone and a digital copy of his personal phone. The company claims Russell and his associates misled legal representatives about his whereabouts and is requesting court permission to serve him by mail or email. Russell’s attorney contends he has been cooperative but requires assurances that personal data on his devices will be protected, which Luminar declined, prompting reliance on court-established data handling procedures. This dispute arises as Luminar moves quickly through bankruptcy, aiming to sell its semiconductor subsidiary to Quantum Computing, Inc., and seeking bids for its lidar division by January 9. Russell, through his new venture Russell AI Labs, attempted to buy Luminar before the bankruptcy filing
robotlidarbankruptcysemiconductorAI-labstechnologylegal-disputeSolar Company Spread Across 9 States Shuts Down Shop, Blames Trump's OBBBA - CleanTechnica
Purelight Power, a solar installation company operating across nine U.S. states, announced its closure and impending Chapter 7 bankruptcy, citing the negative impact of the One Big Beautiful Bill Act (OBBBA) signed by former President Donald Trump. The company attributed its financial struggles primarily to the elimination of consumer tax credits for rooftop solar installations, which had been initially supported by the Inflation Reduction Act of 2022 but lasted less than three years. This abrupt policy change led to a significant drop in business, reduced revenue, and difficulties in financing projects, compounded by other challenges such as a prior merger, rising interest rates, and increased advertising costs. Despite efforts to restructure, reduce costs, and seek refinancing or a buyer, Purelight Power was unable to secure acceptable offers, resulting in the loss of 109 jobs, including 84 in Oregon. The shutdown reflects broader consequences of the Trump administration's rollback of clean energy incentives, which critics argue favors fossil fuel interests at the expense of renewable energy growth,
energysolar-energyrenewable-energyclean-energysolar-powerenergy-policybankruptcyFrom Roombas to e-bikes, why are hardware startups going bankrupt?
The recent bankruptcies of hardware companies iRobot, Luminar, and Rad Power Bikes highlight the significant challenges facing hardware startups today. Each company struggled with a combination of tariff pressures, supply chain disruptions, and changing market dynamics, underscoring the difficulties of manufacturing physical products amid global trade tensions and competition from low-cost overseas producers. These failures serve as a cautionary tale for hardware startups, illustrating how external economic and geopolitical factors can severely impact their viability. The article also references a discussion on TechCrunch’s Equity podcast, where hosts analyze what went wrong for these once-promising companies and explore broader tech industry topics, including Amazon’s substantial investment in OpenAI and new AI regulatory approaches under the Trump administration. Overall, the piece emphasizes the precarious nature of hardware ventures in the current global environment and the need for startups to navigate complex supply chains and market shifts carefully.
robote-bikeshardware-startupssupply-chaintariffsphysical-productsbankruptcyRad Power Bikes files for bankruptcy and is looking to sell the business
Rad Power Bikes, a prominent electric bike manufacturer, filed for Chapter 11 bankruptcy protection, aiming to sell the business within 45-60 days while continuing normal operations. The company cited the bankruptcy as a way to preserve its relationships with customers, vendors, and partners. This move follows a turbulent period marked by multiple layoffs, a CEO change, and a strategic shift from a direct-to-consumer model to a retail-focused approach under new CEO Kathi Lentzch. Rad Power entered bankruptcy with $32 million in assets against $73 million in liabilities, including over $8 million owed to U.S. Customs and Border Protection for unpaid tariffs, a debt listed as disputed. The filing comes amid broader challenges in the e-bike industry, which has seen several companies file for bankruptcy after pandemic-driven demand waned. Rad Power’s difficulties were compounded by a Consumer Product Safety Commission warning about fire risks associated with older Rad Power batteries, a claim the company disputes. Previously, Rad had hoped to secure funding through
energyelectric-bikesbattery-safetybankruptcymicromobilityelectric-vehicle-technologyconsumer-product-safetyHow Luminar’s doomed Volvo deal helped drag the company into bankruptcy
In early 2023, Luminar Technologies appeared poised for success, having secured major automotive customers including Volvo, Mercedes-Benz, and Polestar for its lidar sensors designed to enhance vehicle safety and autonomy. Volvo, a longstanding advocate for vehicle safety, initially committed to purchasing 39,500 sensors in 2020, then increased its order to 673,000 in 2021, and further to 1.1 million sensors in 2022. Luminar invested heavily—around $200 million—in manufacturing capabilities, including a new facility in Monterrey, Mexico, to fulfill Volvo’s large orders, particularly for the EX90 SUV. However, the relationship with Volvo deteriorated significantly by 2024. Volvo delayed the EX90 launch for additional software development and subsequently cut its sensor volume forecast by 75%. Other key partnerships also faltered: Polestar abandoned Luminar’s lidar integration due to software incompatibilities, and Mercedes-Benz terminated its sensor agreement in late 2024, citing unmet requirements
robotlidarautonomous-vehiclesautomotive-technologysensorsbankruptcymanufacturingLidar-maker Luminar files for bankruptcy
Lidar company Luminar has filed for Chapter 11 bankruptcy protection following a challenging year marked by executive departures, significant layoffs, and legal disputes. The company plans to sell its lidar business during the bankruptcy process and has already arranged to sell its semiconductor subsidiary. Despite continuing operations to minimize disruption for suppliers and customers, Luminar will ultimately cease to exist once the bankruptcy proceedings conclude. CEO Paul Ricci emphasized that a court-supervised sale is the best path forward after a thorough review of alternatives. Luminar’s troubles intensified after founder Austin Russell resigned as CEO amid an ethics inquiry but remained on the board and later launched a new venture, Russell AI Labs, while attempting to buy Luminar. The company faced a 25% workforce reduction, the departure of its CFO, loan defaults, an SEC investigation, and eviction lawsuits. A major setback occurred when Volvo, Luminar’s largest customer and early investor, canceled a five-year contract, prompting Luminar to take legal action. The company also faces legal claims
robotlidarautonomous-vehiclessensorsbankruptcytechnologyautomotive-technologyHow iRobot lost its way home
iRobot, the pioneering robotics company founded in 1990 by MIT roboticist Rodney Brooks and colleagues, has filed for Chapter 11 bankruptcy after 35 years of innovation and growth. Best known for its Roomba vacuum, launched in 2002 and sold over 50 million units, iRobot grew from an AI research spinoff into a publicly traded company with significant venture investments. Its peak included launching a venture arm in 2015 to fund robotics startups and a planned acquisition by Amazon in 2022 for $1.7 billion, which was ultimately blocked by European regulators over antitrust concerns. The failed Amazon deal led to CEO Colin Angle’s resignation, a sharp stock decline, and workforce reductions. The company’s decline was accelerated by supply chain disruptions, increased competition from cheaper Chinese robot vacuums, and financial struggles despite a $200 million lifeline from The Carlyle Group in 2023. Now, Shenzhen PICEA Robotics, iRobot’s main supplier and lender,
robotroboticsiRobotRoombaAIautomationbankruptcyNASA and USPS stop using Canoo EVs despite CEO’s pledged support
NASA and the United States Postal Service (USPS) have ceased using electric vans produced by Canoo, an EV startup that filed for bankruptcy in January 2025. NASA had purchased three Canoo vans in 2023 to transport astronauts for its Artemis lunar missions but discontinued their use after Canoo failed to meet mission requirements. NASA is now leasing Boeing’s Airstream-built “Astrovan” for crew transport. Similarly, the USPS stopped using six Canoo vehicles acquired for evaluation in 2024, concluding the assessment with no plans for further investment. The Department of Defense also received at least one demonstration van from Canoo, but its current usage status is unknown. Following Canoo’s bankruptcy, former CEO Tony Aquila made a $4 million bid to acquire the company’s assets, citing a commitment to support government programs that used Canoo vehicles. The bankruptcy judge approved Aquila’s purchase in April 2025, despite competing interest from other parties, including Harbinger—a company
electric-vehiclesEV-startupNASAUSPSbankruptcyautomotive-energygovernment-contractsiRobot debt acquired by contract manufacturer as bankruptcy looms - The Robot Report
iRobot Corp., a well-known maker of robotic vacuum cleaners such as Roomba, is facing severe financial distress with bankruptcy looming. A recent SEC filing revealed that Santrum Hong Kong Co., a subsidiary of China-based Picea Robotics, acquired iRobot’s debt worth $190.6 million, making it the company’s primary creditor. iRobot currently owes Picea $161.5 million for manufacturing products, with $90.9 million overdue, and is engaged in negotiations to resolve these unpaid amounts. Overall, iRobot’s total debt exceeds $350 million, and the company is struggling to maintain liquidity, having burned through its remaining cash reserves and reporting no new sources of capital as of late 2025. The company’s troubles stem from multiple challenges over recent years, including failed diversification after selling its defense unit in 2016, antitrust hurdles blocking Amazon’s $1.7 billion acquisition attempt, and intensified competition from cheaper Chinese brands and established rivals like Dyson. Layoffs
roboticsiRobotrobotic-vacuumbankruptcymanufacturing-debtconsumer-robotscorporate-restructuringMysterious financier asks judge to stop Canoo asset sale
Canoobankruptcyasset-saleelectric-vehiclesinvestmentDelawareCharles-Garson