The RoadRunner Scooters showroom is at 2337 Arapahoe St. in Denver. (Facebook)
Mounting merchant cash advances have bankrupted an electric scooter company in Denver.
Founded in 2020, RoadRunner Scooters designs stand-up scooters that reach speeds of 70 miles per hour and sells them out of its showroom at 2337 Arapahoe St. in Five Points.
The company filed for Chapter 11 bankruptcy Nov. 20 “to stabilize cash flow, protect our operations and position the company for growth,” according to founder and owner Dale Ross.
“We’ve continued shipping scooters, supporting customers and moving forward with our 2026 product roadmap,” he told BusinessDen. “This restructuring gives us the ability to manage past obligations while keeping our team, our customers and our long-term plans on track.”
When asked if he expects to keep his eight employees and showroom, he said, “Absolutely!”
The company has $217,000 in assets — primarily unsold scooters and parts — and $2.9 million in debt. BMO Bank is the largest debtholder at $600,000 and several merchant cash advance lenders are seeking a total of $1.1 million. RoadRunner must also pay $200,000 in taxes, and the Chinese company that manufactures all RoadRunner scooters is owed $166,000.
The business brought in $4.7 million in 2023, $5.4 million in revenue the following year and $3.3 million in the first 11 months of this year, according to its bankruptcy paperwork. Ross, its owner, has been paid $190,000 over the past year and its director of operations made $130,000.
“The debtor has a few issues that led to this bankruptcy filing,” Ross wrote of RoadRunner in an affidavit he filed with the U.S. Bankruptcy Court in Denver last week. “Primarily, the debtor had some unexpected financial issues that caused it to take out merchant cash advances.
“Issues related to the merchant cash advances spiraled and with so many creditors being paid significant amounts either daily or weekly, the cash flow became unsustainable,” he said. “This bankruptcy case has been filed in an effort to stop the daily and weekly payments to the merchant cash advance creditors and give the debtor breathing room to reorganize.”
RoadRunner’s bankruptcy lawyer is Jon Dickey of Kutner Brinen Dickey Riley in Denver.
The RoadRunner Scooters showroom is at 2337 Arapahoe St. in Denver. (Facebook)
Mounting merchant cash advances have bankrupted an electric scooter company in Denver.
Founded in 2020, RoadRunner Scooters designs stand-up scooters that reach speeds of 70 miles per hour and sells them out of its showroom at 2337 Arapahoe St. in Five Points.
The company filed for Chapter 11 bankruptcy Nov. 20 “to stabilize cash flow, protect our operations and position the company for growth,” according to founder and owner Dale Ross.
“We’ve continued shipping scooters, supporting customers and moving forward with our 2026 product roadmap,” he told BusinessDen. “This restructuring gives us the ability to manage past obligations while keeping our team, our customers and our long-term plans on track.”
When asked if he expects to keep his eight employees and showroom, he said, “Absolutely!”
The company has $217,000 in assets — primarily unsold scooters and parts — and $2.9 million in debt. BMO Bank is the largest debtholder at $600,000 and several merchant cash advance lenders are seeking a total of $1.1 million. RoadRunner must also pay $200,000 in taxes, and the Chinese company that manufactures all RoadRunner scooters is owed $166,000.
The business brought in $4.7 million in 2023, $5.4 million in revenue the following year and $3.3 million in the first 11 months of this year, according to its bankruptcy paperwork. Ross, its owner, has been paid $190,000 over the past year and its director of operations made $130,000.
“The debtor has a few issues that led to this bankruptcy filing,” Ross wrote of RoadRunner in an affidavit he filed with the U.S. Bankruptcy Court in Denver last week. “Primarily, the debtor had some unexpected financial issues that caused it to take out merchant cash advances.
“Issues related to the merchant cash advances spiraled and with so many creditors being paid significant amounts either daily or weekly, the cash flow became unsustainable,” he said. “This bankruptcy case has been filed in an effort to stop the daily and weekly payments to the merchant cash advance creditors and give the debtor breathing room to reorganize.”
RoadRunner’s bankruptcy lawyer is Jon Dickey of Kutner Brinen Dickey Riley in Denver.
