April 23, 2024 - Kent Outdoors has announced that Kona Bicycles is for sale following its abrupt exit from the Sea Otter Classic on April 17 and the appointment of a new CFO on April 18 (read more here). In a press release regarding a $100 million credit facility from asset-based lender (ABL) Eclipse Business Capital, the company included the following statement.
“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. This move 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.
“Within the Kent Outdoors family of brands, we pride ourselves on a robust legacy characterized by resilience and an unwavering ability to overcome hurdles, consistently emerging stronger in the face of adversity,” said C.J. Vlahovich, who leads Kent’s Watersports division. “While the path to improvement has been demanding, our devoted team remains steadfast in our conviction that Kent Outdoors is destined to continue as the foremost innovator in cultivating vibrant brands that elevate outdoor enjoyment for all.”
Kent Outdoors acquired Kona Bicycles in 2022, but has had challenges amidst the current boom-bust situation within the cycling industry. As reported there were concerns regarding Kona’s new consumer-direct sales program which was not met favourably by bicycle retailers, and there have been buy-one-get-one free promotions as well.
Amidst turmoil Kona staff abruptly tore down their booth at the Sea Otter Classic and exited the event while Rob Otto was hired as it new chief financial officer (CFO).
Kona Bicycles, a global company that’s renowned for its mountain and cyclocross bikes, dates back to 1988. Kent Outdoors, owns more than 15 brands including HO/Hyperlite, Connelly, O’Brien, Liquid Force, Onyx, Aquaglide and more.
Read the Kent Outdoors press release here.
