Months after its "buy one get one free" sale, American bicycle manufacturer Kona Bikes has been put up for sale by its owners, Kent Outdoors, amid reports that it is being wound down.
At last week's Sea Otter Classic industry show, the brand set up its booth but then disappeared mid-week, with the sale - which is reported to result in lay-offs - emerging soon after.
Kent Outdoors, a Canadian sporting goods company, bought Kona from its founders in 2022 and appointed a new CFO last week, apparently to deal with the sale after a strategic review.
“In connection with the investment of capital and the management team coming onboard, the company performed a strategic review of its operating units and determined that it would continue to seek a buyer for its bike business, Kona,” a Kent Outdoors press release stated, which was published over the weekend.
"This move (selling Kona) allows the company to direct its resources toward investment in its key water sports businesses. The bike industry has faced very significant challenges in the post-Covid world and Kona has not been immune to these headwinds."
In December, Kona Bikes offered a "buy one get one free" offer on some bikes, which suggested it was aiming to up sales at a rapid rate. The approach is similar to the price slashing seen at Canyon, however, with a less positive outcome.
Staff were informed during a town hall meeting last Thursday that were would be extensive job losses, according to Singletrack World. A source told the publication that the company is being wound down and that the brand's intellectual property would be the primary bargaining chip. An insider told Singletrack that Kent Outdoors believes that the bike industry will not recover for up to two years.
A report from the Bicycle Association in the UK said earlier this year that it will likely take at least until 2025 for the British bike industry to correct itself following the Covid boom which has affected many brands.
Kona's UK distributor, Mount Green Cycles, said that they intend to continue to import and distribute the bikes "while stocks last". In an email to its dealers, Mount Green's Scott Taylor said: "In the coming hours Kent Outdoors will put live a press release announcing they are pulling out of the bike business, alongside more positive news for the rest of their portfolio of brands.
"This means, through no fault of its staff, its amazing product or its global network of loyal fans, Kona USA and its EU entities will cease trading in the coming months."
It is believed that there is still a healthy stock of Kona bikes available, hence the optimism on continuing to distribute the bikes, until supply runs out.
