If you spend any time around bikes or in bike shops, you’ve probably heard the chatter: Is Kona Bikes going out of business? Maybe you’ve seen the stories pop up since early 2024 on forums or bike news sites. It’s understandable why folks are a little confused. There was drama, uncertainty, and a lot of rapid changes. So, what actually happened and is Kona done for? Let’s clear it up.
The Short Answer: Kona Bikes Isn’t Going Out of Business
The bottom line is that Kona Bikes is still here. Sure, things got shaky for a minute. But as of now, the company is back in the hands of its original founders, and the lights are on. The rumors of shutdown mostly came from a weird stretch in spring 2024, when Kona’s future was up in the air due to some trouble with its new owners.
So, how did a brand with such a loyal following almost get tossed out of the bike game? We’ll walk through the bizarre series of events and how things turned around, at least for now.
How Did Kona Bikes Get Here? The Backstory
Let’s rewind quickly. Kona Bikes is one of those well-loved brands that’s been around since the 1980s, started by Jake Heilbron and Dan Gerhard. If you’ve ever owned a Kona, you know the brand’s got a bit of a cult following, especially in off-road and mountain biking circles.
In early 2022, Kona was sold to a group called Kent Outdoors. Kent is mainly known for outdoor sports equipment not bikes. The move felt a little odd to some in the bike world, but the thinking was Kona would get a boost with more resources behind it.
But just as this new chapter started, things got bumpy fast.
Post-COVID Troubles: Layoffs, Store Closures, and Supplier Issues
Pretty soon after Kent took over, trouble started brewing. The bike industry as a whole was already hurting in the aftermath of the COVID-19 boom when demand for bikes skyrocketed, only to crash later as supply chains caught up and interest faded.
Kona’s flagship store in Bellingham closed its doors. Sales reps were let go. The company started shifting more towards selling online, going direct-to-consumer instead of mostly through local shops.
Behind the scenes, things were even messier. Suppliers and manufacturers weren’t getting paid on time. This created tension not just internally at Kona, but also with the folks who build the parts and bikes worldwide. Some employees described the environment as “toxic,” with stress levels rising as cash ran short and leadership struggled to turn things around.
The Sea Otter Classic Incident: The Breaking Point
If you followed bike news in April 2024, you probably saw some head-scratching coverage from the Sea Otter Classic, a big annual event for the cycling industry. Kona showed up ready to launch a flashy new gravel bike the Ouroboros. But, in a move that had folks rubbing their eyes, they packed up the booth and left the show on the CEO’s orders before the weekend was over.
Why the rush? Turns out, Kent Outdoors (Kona’s parent company) had made the call to exit the bike business completely. They’d gotten a new investment (a $100 million credit line) and wanted to focus only on water sports gear. That meant they were suddenly trying to offload the Kona brand, and employees at the show got the news in real time.
All this chaos led to layoffs, and news began to spread: Is this it for Kona? Are they shutting down? At the time, nobody really knew.
Founders to the Rescue: Kona Gets Bought Back
That could’ve been the end of the story if it weren’t for a twist. Within weeks of Kent’s dramatic exit, founders Jake Heilbron and Dan Gerhard stepped up. Alongside some key Kona employees, they moved quickly to buy the company back from Kent. It wasn’t an easy handoff after all, the company still had to clean up the mess left behind, including paying angry suppliers who hadn’t seen a check in months.
As soon as the founders got back in charge in May 2024, they hit pause on direct online sales. Instead, they decided to focus again on their big network of dealer shops (over 1,000 stores in North America and Europe). There was a renewed focus on making pricing fairer and on getting back to “rider-owned” business values.
A lot of local shops and Kona fans breathed a sigh of relief. For a brand that once prioritized community and quality, it felt like the company was finally on the right track again.
Fixing What Went Wrong One Step at a Time
Obviously, snapping your fingers doesn’t fix everything overnight. The founders were clear: There’s work to do. One issue that stood out immediately was the safety factor of bikes shipped directly to customers. When bikes arrive in boxes, unassembled, there’s more room for mistakes. Heilbron and Gerhard made it plain they wanted to invest in a support program to make sure customers got safe, working bikes, whether bought online or at local dealers.
The new plan is to lean into that dealer network. These are the folks who assemble, tweak, and support bikes for real riders something that’s tough to do through just a website and a warehouse.
In July 2024, Kona’s blog posted a celebratory update titled “Back in the Dirt: The Kona Ride Returns.” It was a sign that, at least for now, the business is back on track even if the path was bumpy.
Kona’s Troubles and the Bike Industry Crash
You’re probably wondering: Is all this just a Kona issue, or is the whole bike industry struggling? Honestly, it’s been a tough stretch for a lot of brands. After the COVID bike boom, the market crashed hard as demand slumped and shops were suddenly flooded with overstock. Supply chains had caught up just as customers moved on.
Sound familiar? Other bike companies haven’t made it through the crash. Brands like SONDORS (e-bikes) shut down in 2023. CAKE, an e-moto company, filed for bankruptcy in 2024. Even VanMoof, the Dutch e-bike darling, went bankrupt in 2023.
Kona’s story is different because they managed to pull off a founder-led buyback right before things got worse. That’s probably the only reason the brand is still around today.
If you’re interested in the broader trends, it’s worth checking out business sites that track retail and side hustles like this one.
The Takeaway: Kona Bikes Still Rolling
So where does that leave us and you, if you’re a rider or thinking about a new Kona? Based on reports and updates as recent as July 2024, Kona is open. They’re selling bikes, albeit with a bit less flash and a lot more focus on their roots quality, independent dealers, and friendly service.
The founders seem determined to fix the recent missteps. There’s open talk about improving customer service, making prices more competitive, and supporting local shops instead of just pumping out bikes online. For fans and longtime customers, it feels a little like the old Kona again. But nobody’s pretending it’s easy the bike business in general is still shaky, and it takes time to rebuild trust.
As of now, there’s no new evidence or credible report suggesting Kona is going under. The wild rumors were rooted in some real chaos, but things stabilized fast after the founders returned. Of course, everyone in the industry is keeping an eye out but for now, Kona’s rolling on.
If you’re shopping or just watching from the sidelines, that’s the real story behind the headlines: Not the end, just a bumpy patch and, maybe, a fresh start for one of cycling’s most recognizable brands.
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