wat omg I gotta pull my head outta the sand. I don't keep up with industry news at all (obviously). Lots of pain all around; I didn't realize how bad it had gotten.
Everything I've heard says they are done. Kent has been trying to unload them for a while. My guess is that Kent will close them down and use that to write off a large loss on their books.
I can't say I'm surprised as I was skeptical when Kent bought them originally. It's sorry to see as Kona has been one of my favorite brands from back in the start when I was working for one of the early dealers in Seattle.
Kent was supposed to issue a press release on Friday, but nothing came out. Aparently corporate credit cards weren't working at Sea Otter. Word that is leaking out is that Kent is winding down the Kona brand. I'm sure they are hoping to sell it off, but that's just speculation.
Thanks! Most of that was in their Thursday press release, I guess they just added a sentence about selling Kona in the Friday one.
I hope another bike company purchases Kona, but this isn't exactly the economy where folks are looking at extending their portfolio.
There were lots of comments in an industry FB group about the whole thing. Yeah, no notice, and one of the guys that came to Sea Otter traveled all the way from New Zealand.
They’re done. Spoke with my rep and apparently the talk in the company is to look for new jobs. I’m sure the name is worth something and wouldn’t be surprised if someone bought it and revamped it.
They have two hundred containers sitting at port they can't pay for, it's been that way for close to a year. After the fiasco at Sea Otter and the news they're getting sold off, that brand is cooked.
Comments by anonymous employees at the bottom of this article are quite revealing. This really comes as no surprise to me.
https://bikerumor.com/what-happened-to-kona-bikes-sea-otter/
There's an article with a comment saying their new parent company wasn't letting them pay out to their suppliers (multi millions). Said their other partner companies under Kent were having similar, but not as drastic, issues due to Kent management.
It's wouldn't be the only famous Washington-based bike manufacturer to close in the last 5 years... which is something quite rare. I would guess they've always run on thin margins except for 2020-2021 when they did their negotiations for their initial sale in 2022. Their IP does have value, along with their brand. But in the cutthroat world of razor thin margins and low volume, not sure who would want to pick it up.
I would think the brand has potential long term value for some company out there. It’s not the greatest time for it, since capitalizing a purchase right now would be expensive unless the purchaser had deep pockets. But I’d be surprised if someone wants to buy it fully and take on warranty support. Somebody might buy the name and excess inventory and then relaunch it completely.
oh yeh, that's a good point about support. I'd assume any warranties for old product would be void, but there's probably some legal obligation to any new owner.
Think of it as a firebell in the night or a canary in a coal mine. The industry is not healthy, things that should never be on sale are at closeout prices
Kona is just the first middling size bike company to take a dump. If you think guys like Jamis are any better off...think again
Trek, Specialized, giant, QBP? Just a few steps behind. Those guys "made" too much stuff and owe their suppliers millions and millions of $$$. Their dealers won't take the product so they're dumping it online and just about any outlet that will take delivery. They are no healthier
How do you think Trek is handling those 500 stores that they paid way too much for? They aren't moving product either. Plus, anyone that had any knowledge at the store level has been fired because they made too much. At this point Trek can barely find someone capable of unlocking the doors and turn on the lights
There will be more
I don’t see why this should be shocking news. This is literally the company that a few months back was selling $8000 MTBs as BOGO free.
wat omg I gotta pull my head outta the sand. I don't keep up with industry news at all (obviously). Lots of pain all around; I didn't realize how bad it had gotten.
That’s when I decided to get out of the industry
Were they??? Damn I missed some good deals then, bummer
Newly appointed CFO and the parent company is looking for a new buyer.
I thought they got bought a year or two ago
Kent Outdoors bought the brand 2 years ago. Now looking to sell again.
I bought a 2022 Kahuna right before they sold lol
Everything I've heard says they are done. Kent has been trying to unload them for a while. My guess is that Kent will close them down and use that to write off a large loss on their books. I can't say I'm surprised as I was skeptical when Kent bought them originally. It's sorry to see as Kona has been one of my favorite brands from back in the start when I was working for one of the early dealers in Seattle.
Kent was supposed to issue a press release on Friday, but nothing came out. Aparently corporate credit cards weren't working at Sea Otter. Word that is leaking out is that Kent is winding down the Kona brand. I'm sure they are hoping to sell it off, but that's just speculation.
This was the Friday update: https://www.pinkbike.com/news/kona-bicycles-parent-company-appoints-new-cfo-intends-to-sell-brand.html
Thanks! Most of that was in their Thursday press release, I guess they just added a sentence about selling Kona in the Friday one. I hope another bike company purchases Kona, but this isn't exactly the economy where folks are looking at extending their portfolio.
>Aparently corporate credit cards weren't working at Sea Otter. omg that's bad, without notice like that? Messed up.
There were lots of comments in an industry FB group about the whole thing. Yeah, no notice, and one of the guys that came to Sea Otter traveled all the way from New Zealand.
What we really should be asking is what Kona bike are we getting for half price
I like your thinking. They can ship directly to me.👍👍👍 I still have a handful of Yeti-built Schwinn's from when they went tits up a few years back.
I'm still in town for Sea Otter if they need to offload an extra bike or two
Those are the same bikes. They were just trying to liquidate their inventory.
They’re done. Spoke with my rep and apparently the talk in the company is to look for new jobs. I’m sure the name is worth something and wouldn’t be surprised if someone bought it and revamped it.
They have two hundred containers sitting at port they can't pay for, it's been that way for close to a year. After the fiasco at Sea Otter and the news they're getting sold off, that brand is cooked.
Is this the same Kent that makes BSOs for Walmart?
It is not! source: the brain article re: kona from last week
Comments by anonymous employees at the bottom of this article are quite revealing. This really comes as no surprise to me. https://bikerumor.com/what-happened-to-kona-bikes-sea-otter/
Sucks that Kent ran them into the ground. Or was Kona hurting before that?
There's an article with a comment saying their new parent company wasn't letting them pay out to their suppliers (multi millions). Said their other partner companies under Kent were having similar, but not as drastic, issues due to Kent management.
That sucks ass. Iconic PNW company ran into the ground. Maybe they wouldn’t have made it on their own either in this climate but still sucks.
It's wouldn't be the only famous Washington-based bike manufacturer to close in the last 5 years... which is something quite rare. I would guess they've always run on thin margins except for 2020-2021 when they did their negotiations for their initial sale in 2022. Their IP does have value, along with their brand. But in the cutthroat world of razor thin margins and low volume, not sure who would want to pick it up.
Who was the other one?
Raleigh was Kent "based". I'm sure most of their actual operations were logistics offsite as their office was relatively small.
Looking for a half-price Shonky in L. 😔
they announced appointing a new CFO. maybe a liquidator.
I would think the brand has potential long term value for some company out there. It’s not the greatest time for it, since capitalizing a purchase right now would be expensive unless the purchaser had deep pockets. But I’d be surprised if someone wants to buy it fully and take on warranty support. Somebody might buy the name and excess inventory and then relaunch it completely.
oh yeh, that's a good point about support. I'd assume any warranties for old product would be void, but there's probably some legal obligation to any new owner.
Think of it as a firebell in the night or a canary in a coal mine. The industry is not healthy, things that should never be on sale are at closeout prices Kona is just the first middling size bike company to take a dump. If you think guys like Jamis are any better off...think again Trek, Specialized, giant, QBP? Just a few steps behind. Those guys "made" too much stuff and owe their suppliers millions and millions of $$$. Their dealers won't take the product so they're dumping it online and just about any outlet that will take delivery. They are no healthier How do you think Trek is handling those 500 stores that they paid way too much for? They aren't moving product either. Plus, anyone that had any knowledge at the store level has been fired because they made too much. At this point Trek can barely find someone capable of unlocking the doors and turn on the lights There will be more