Rad Power Bikes, the once dominant electric bicycle brand in the US, filed for Chapter 11 bankruptcy protection this week as it seeks to sell of its company. The move comes less than a month after Rad Power said it could not afford to recall its older e-bike batteries that had been designated a fire risk by the US Consumer Protection Safety Commission.

The bankruptcy, which was first reported by Bicycle Retailer, was filed in US Bankruptcy Court for the Eastern District of Washington, near the company’s headquarters in Seattle. Rad Power lists its estimated assets at $32.1 million and estimated liabilities at $72.8 million. Its inventory of e-bikes, spare parts, and accessories is listged at $14.2 million, Bicycle Retailer says.

It’s a stunning reversal for the once leading e-bike company in the US. Mike Radenbaugh founded the company in 2015 after several years of selling custom-made e-bikes to customers on the West Coast. Rad Power quickly grew to over 11 distinct models, including the fat-tire RadRover, the long-tail RadWagon, and the versatile RadRunner. Rad Power Bikes raised an approximate total of $329 million across several funding rounds, primarily in 2021, with major investments from firms like Fidelity, Morgan Stanley, and T. Rowe Price.

But in the wake of the post-covid bike boom, things started to go south. There were supply chain disruptions, safety recalls, several rounds of layoffs, and executive turnover. Last month, Rad Power said it was facing “significant financial challenges” that could lead to its imminent closure without a cash infusion.

The CPSC warning apparently was the nail in the coffin. The company’s older batteries could “unexpectedly ignite and explode,” the agency warned, citing 31 fires, including 12 reports of property damage totaling $734,500. There weren’t any injuries, but the company said it couldn’t afford a costly recall.

Rad Power could still live on if its able to find a buyer for its assets and brand. Dutch e-bike make VanMoof was able to find a buyer following its 2023 bankruptcy. And Belgium’s Cowboy is in talks to be acquired by a French holding company of several bike brands. Rad Power will continue to operate as it restructures its debts under court supervision, and in a statement to Bicycle Retailer said it will continue to sell bikes and work with customers and vendors as it moves forward with the process.