The end is no longer nigh: Kona Bikes

[greencat]

Happened a few times in the tech world, big company buys a small one, screws it up and founders buy it back for less - sometimes actual pennies on the dollar. Not every merger or acquisition can be a success. At a different time, the Kona/Kent partnership might have worked out, but these have been some strange times.

 

[W7Ford]

For me this was the only option I wanted to see. Great news!

 

[al-onestare]

Bit more from Dan and Jake:

https://www.bicycleretailer.com/industry-news/2024/05/19/kona-bicycles-co-founders-letter-industry

 

[FluffyChicken]

Now you need a Kona only BoTM (can do both MTB sections)

 

[Splatter Paint]

“such an iconic, quirky, real, big little bicycle company”

 

[Woz]

Glad to here this. Does anyone know any facts about the initial sale vs. re-purchase value?

My only concern is this. So the original owners left ship. Ship became a wreck. Original owners salvaged ship.

This is a bit odd, I imagine there are both financial and emotional things at play, but there is a part of me that does say, when you leave the ship, you really do really leave ship - the decision is firm and made. Call me cynical, but of course things do change over time.

I think what I want to say is let's hope this has some permanence, with more controlled eventual handover to someone else in the future, rather than being lucrative and quick win and we need to re-bump this thread because history could potentially repeat itself copy-n-paste style.

 

[Cloverleaf]

I guess it depends whether the decision to sell was based on a big enough offer being made, or them being fed up of it. They've taken the equity out and bought back at a lower price (I assume), and possibly with some financial investment from external sources which would mean they still have the cash from the original sale in their pockets. And if they were fed up then a few years out of the industry may have been enough to reset themselves. All your points are valid though, and likewise I hope it's a renaissance for the brand. I suspect they'll always struggle to match the current top tier brands (price wise) like Trek, SC and Specialized, but then I don't really see that as a problem because they never really inhabited that particular area previously. If they sell a smaller range of solid bikes with good back up and decent spec that ticks boxes the mainstream don't then they'll hopefully rekindle some of that earlier spark.

 

[riskllama]

wow, this is awesome - was just gonna post asking for some news & saw Al’s post, incredible! hope Kent got hosed on the buyout/buyback… . was gonna start shopping around for a 2018 Explosif, as it was the last production year for them, but now I think I’ll just hold off on that for a bit in hopes of a new one…*fingers crossed*

 

[al-onestare]

First obvious change since the news, the UK flagship store in Chertsy has closed. Ben is a member here so I'll be careful to say what I think. In all honesty I think it's the right call but clearly a challenging time for the staff who I feel for a lot and who have been super good to me and many others.

 

[al-onestare]

wow, this is awesome - was just gonna post asking for some news & saw Al’s post, incredible! hope Kent got hosed on the buyout/buyback… . was gonna start shopping around for a 2018 Explosif, as it was the last production year for them, but now I think I’ll just hold off on that for a bit in hopes of a new one…*fingers crossed*

Never say never but I'll eat my hat if a steel Explosif makes an appearance in the next couple of years.