Kona Bankrupt? Pole? Colorado Cyclist? - And where was Santa Cruz at Sea Otter Classic 2024?

Kona Bikes bankrupt or being sold? Pole insolvent or bankruptcy. Colorado Cyclist and Planet Cyclery closing. Santa Cruz Bikes not at Sea Otter. This and other Sea Otter news are discussed.
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[@drone_tech_review]

Posted anonymously by an employee of Kona (from BikeRumor) "I’m posting anonymously due to potential repercussions, but as someone who works at Kona under Kent Outdoors, I feel compelled to share the distressing realities we face and urge you to take action. Kent Outdoors is currently run by short-sighted individuals who are utterly disconnected from the communities, sports, and people attached to their brands. Their lack of understanding and interest in cycling and any other sport has not only led to poor decision making but also to a toxic corporate environment where Kona and their other brands are suffering greatly. Under their management, Kona has accumulated millions of dollars in unpaid debts to our suppliers (Fairly and Hodaka), with no attempts made to negotiate or even communicate, effectively planning to stiff them. This strategy isn’t limited to Kona; it’s a disturbing pattern that is evident across all brands under the Kent Outdoors umbrella. I urge all suppliers and partners across the board that do business with Kent Outdoors to be careful. Everyone should be seriously concerned about this pattern of non-payment and poor business ethics. The working conditions here are more than just poor-they’re abysmal. Communication is practically non-existent now under the new management, creating a chaotic environment where decisions are made without transparency or employee input. The stress of potentially not getting paid has been a reality for some of us, adding to an overwhelming sense of job insecurity. Long hours, and weekend work, is the norm all without additional compensation or even basic recognition of our hard work. The only individuals who seem to survive and even advance under the current regime are the “yes men” those who align too readily with a flawed agenda, lacking critical engagement or genuine passion for the brands. This has caused significant unrest among other brands under the Kent Outdoors umbrella, who are equally upset about these new leaders. Their inability to effectively manage people, combined with a lack of fundamental understanding of the communities they serve, is rapidly destroying the companies. These leaders are not just failing; they are actively dismantling the very essence of what made all of these brands successful. The company is not just being led poorly; it’s being led by individuals who don’t seem to care about the damage they’re doing to the brands, communities, or people. Any company considering a partnership with Kent Outdoors should seriously reconsider. Any customer should consider carefully buying products from our companies since who knows if we will even have the parts to support them. In light of these issues, I am calling on all community members to join us in boycotting all Kent Outdoors brands. We need to demonstrate that these destructive practices are unacceptable. By uniting and applying public pressure, we hope to initiate a significant change in Kent Outdoors’ direction and leadership to a model that values the employees, respects the community, and truly understands the sports industries they are part of. Thank you for taking the time to read this and for any support you can lend. Let’s stand together to save Kona and the other brands we cherish."

[@lbardocz]

why dont you buy them and show how its done? talk is cheap...the world is entering a recession and the bike industry is in permanent decline. welcome to reality.

[@sqd8r]

Sounds like you are talking yourself out of a job there. Reconsider.

[@AZMTB]

I noticed that also at the Sedona MTB festival Santa Cruz has been missing since I think 2021. Their initital reasoning was because of covid but everyone, even Yeti, were at Sedona and they weren't.

[@EMTBReview]

Thanks for the input.

[@Accu53Mation]

Being that many pricey brands(Specialized, Kona, Santa Cruz, Intense), have many videos on KZbin, the majority of videos are now bikes actually owned. It's a 30:1 ratio. Every thirty(usually more) videos by testers, using a loaned bike, making a review, compared to one video(usally none can be found), by actual owners. That tells me something about the survivability of a brand. Come-on. A bike manufacturedin Taiwan, China, Vietnam, that cost a couple-hundred dollars, for the frame, is being sold for ten-thousand USD$. Those companies deserve to go outta business.

[@EMTBReview]

Videos on youtube reviewed by owners. I'm not sure how that data point is meaningful since most owners don't have a youtube channel. And an owner doesn't usually want to say anything negative about something that put a big dent on their piggy bank. Carbon frames can't be manufactured in the US unfortunately. We lost that capability. Hopefully, we can get it back. Yes, hopefully, we can get the price of great bikes back down to earth.

[@jaykeehan5813]

Sorry to hear about Colorado. They sold Tomasini SLX frames at reasonable prices back in the late eighties that I bought and used many years with parts I removed from my Dave Scott Ironman. The catalogs were great to gape at also. It was an era where a layman cyclist could keep up with most products and understand their purpose. Now that would be overwhelming.

[@EMTBReview]

Exactly. It was the age of discovery for me as far as biking. I looked at every product and read most of the descriptions!

[@mikes.8305]

SantaCruz did have an amazing booth, but it was always horrible vibe they put off. That was one booth where all the employees seemed to hide in the back and didn’t want to engage much to outsiders. Idk. Most of the other people are pretty stoked to be there, even being exhausted and all. SantaCruz was also one of the brands to cancel huge sram and shimano orders during Covid. Then with the bike boom they struggled to get bikes quickly even more than other brands because they simply couldn’t get build kits with all of the supply constraints.

[@EMTBReview]

We appreciate your input.

[@thiendinh_]

Bummed to see some of these brands fading away. Great update Francis!

[@EMTBReview]

You and me both! Thank you and hope you’re doing well, my friend.

[@dit4963]

Don't you feel more bummed for the riders getting ripped off with ridiculous prices by most of these brands for years?

[@1speedbrian]

I bought a pair of Process Xs for my wife and daughter on the BOGO deal. Was a super cheep way to get them some bikepark bikes they may only ride but a dozen times a year instead of renting. They love the bikes and it was a great deal. Went into it knowing warranty may not be a thing.

[@EMTBReview]

Your share is much appreciated!! Yes, if there's a family member that could use the same bike, then it works out perfectly. Question: Can you select another bike as the second bike in the deal purchase?

[@sety409]

I was an inch away from buying a pole onni over an ibis oso. What a shame. They had their own thing going in.

[@EMTBReview]

Yeah, they had a surge of interest with that new release. It seems there are folks who bought that bike and who put in deposits and they are scrambling on the user group, fearing they've lost their money.

[@onetime242]

Poles website is still available to view, but you can’t actually make a purchase, so that’s some misinformation. Also, there is still a chance they can be bought. So they’re not necessarily done. Fingers crossed 🤞🏼 they’re not. I love my Voima and I looked forward to future bikes from them.

[@sety409]

I tagged sequoia capital on their post about looking for investors. I would love to see them live.

[@EMTBReview]

That's good to see. Their site was allowing purchases after the bankruptcy was announced so this is a good development. It is still very vague though on their website with 'buy it' and shopping carts. The only thing they did was disable log-in with no messaging whatsoever. They're insolvent or Chapter 7 (U.S. Version) that's definitely not good. Someone can buy their assets hopefully and salvage the brand and bikes.

[@soomad]

​@@EMTBReviewso we in Finland differentiate between bankruptcy and restructuring. Pole has submitted their bankruptcy application to the court and the court has "accepted" their application and "set them bankrupt" as we call it, but that is the start of the proceedings. Now it is up to the estate manager and estate "steering group" (I'm using generalized terms, not the direct legal translations) to decide how they will continue with the estate. In some cases the estate could decide to continue deliveries if they have units prepared for shipping (to eg. get the rest of the payments in for bikes which they have deposits for). But I admit that is perhaps exceptional.

[@EMTBReview]

@@soomad thank you, thank you. Your insight is very helpful especially in these international matters.

[@pepitopepito2967]

Ari bikes are looking good. had the chance demoing the nebo peak. such a natural feeling bike

[@EMTBReview]

They sure are. They're innovating and moving up every year. The rebrand is good too. Part of their advantage is they don't have dealers and don't carry much inventory. So they're very agile in terms of new bikes and new component spec for each bike. Check my Ari Nebo review here: kzbin.info/www/bejne/rZ6lmKSChrhoosU

[@joehoeper4648]

They still have that "Fezzari" weirdness to the brand as a whole

[@soomad]

Woth ref to Pole, in the there have been a couple of bigger bankruptcies in Finland of companies directly supplying the consumer market (Töölö travel agency & Anttila). The lear ing we have talen home from these is that _always purchase online with you credit card_. Not only might you have insurance on the credit card to repay you, but the credit card company or bank behind the car are more likely to be a bigger / more preferred creditor in the estate.

[@EMTBReview]

Pay by credit card... that's such great advice. American Express i hear is great when it comes to buyer protection.

[@thecyclesaint]

Thanks for the update. I was wondering about a few of the brands you mentioned while attending Sea Otter, particularly Santa Cruz. Hopefully the industry can stabilize a bit before we loose any more good brands and passionate bike people.

[@EMTBReview]

I am happy to be able to share some of my information. Yeah this continues to be a tough year for the bike industry so the summer and spring revenue will determine the future of a lot of companies.

[@Rzagski]

The fact that we’ve is being brought into Utahs private equity ownership business “mafia” isn’t necessarily a bad thing. Enve was born as a High tech US manufactured product and a boutique brand. Just like Ferrari, Porsche Mercedes isn’t for everyone neither is enve. I hope the leadership learns basic economic lessons that can be taught any college econ 101 class and commits to a viable economic model that includes r&d and responsible growth while maintaining premium status.

[@Star_lord22]

Does your push have a hypercoil? I notice its black

[@EMTBReview]

No, that's just a Marzocchi spring since that's the one thats perfect for my weight.

Sad for Pole...that Sonni was in my top 3 list

[@EMTBReview]

The founder said the interest in the brand and sales picked up so much after the Sonni was released. That's like the smaller Tesla which had more relevance to a lot more folks.

[@bike314]

I'm considering getting an e mountain bike. Any tips for getting one on a decent sale?

[@EMTBReview]

Yes, check the ebikes on sale at Jenson USA. Great partner of ours here: alnk.to/8PDStqe The Orbea Rise is a great bike and is on a significant sale.

[@bike314]

@@bfranco1519 Is it listed on pinkbike?

[@sqd8r]

#2 reason to not buy a e-bike... lack of support from even the best in the industry. #1 is you don't need it if you are able bodied.

[@wayofthehike]

I wonder how Specialized is doing behind the scenes? Trek seems to be having issues but have t heard too much negative about Specialized financial situation…

[@EMTBReview]

They seem to be stable. I'm sure inventory issues are clogging the pipeline, possibly holding up new releases. They had all Levos for sale late last year and their $6k carbon Levo was on sale for $3500 plus a free 700wh battery. So they've acted swiftly and aggressively.

@@EMTBReview And I was hoping for a new longer travel Levo or a new Kenevo

[@BillyBob-ri9pm]

@@EMTBReview 50% off sale in UK right now and rumours that their owners are considering putting Spesh up for sale but only a rumour so far. They have however been laying off some staff worldwide. Trek also taking steps to rationalise. Watch this space I think...

[@josuealvarez3153]

Still don’t see a Heckler SL in your stable my friend

[@EMTBReview]

I had one twice for a week each time, but they took it back right away due to high demand. Maybe sometime this summer, Santa Cruz will give me one.

[@chasejiannalone8763]

I had a Pole Voima on order and a $1000 deposit. The FB riders page has several people chime in with the same and some with as much as 12K Euro's !!! Lots of people are out a significant sum of money. The really bad thing is they were hitting us with orders up to pay the balance of our invoices just 2 weeks ago, saying shipping was soon. Some of us oldsters saw that as a flag and demanded a definitive date and even proof of shipping label before we would pay what is a $6-12k in many cases. They would have had to know this was in the works.

[@EMTBReview]

OMG, OMG!!!! This is not cool. Please keep us posted.

[@soomad]

We had a long political strike (because there is a legislative proposal to limit political strikes to a day) impacting the ports / international transportation and that apparently was the straw that broke the camel's back if I'm interpreting what Leo said correctly.

[@minerva2958]

@@soomadLeo is a liar! One time shipping delays don’t break a company. He failed to make a profitable company, behaved like a total asshat towards customers and potential customers and treated the company like it was his fiefdom. The reality is that the company is wasn’t actually his. The money was being pumped in by third parties who grew sick and tired of his BS and quite simply cut their losses. Instead of doing the decent thing he kept pushing for sales that had basically no chance of ever going through leaving many people out of pocket. He’s an absolute ass!

[@PelicanIslandLabs]

Sounds like the entire bike biz is circling the toilet. It's too bad but I'm not surprised due to the crazy prices that some of these companies are asking.

[@EMTBReview]

It takes a couple years to unwind this excess inventory. Hopefully, innovation nad fair pricing will come out at the other end.

[@50whatnomadtravelnursemtb5]

Innovate with too high of a price…shows you that these insanely priced bikes are ruining the industry

[@EMTBReview]

For sure. And ebikes don's have to be $14k... since saving the last two lbs means mostly nothing.

[@EMTBReview]

Stages Cycling Power Meters has shut down operations - www.bicycleretailer.com/industry-news/2024/04/24/stages-cycling-executives-join-giant-after-suit-and-apparent-shut-down

[@stephenbrown3760]

Any sign of Nukeproof?

[@EMTBReview]

No sign of life yet.

[@BillyBob-ri9pm]

@@EMTBReview Nukeproof owned by Chain Reaction/Wiggle who went bankrupt several months ago. The IP of Nukeproof and Vitus bikes got sold along with all else to Mike Ashley a UK shop owner who specialises in buying bankrupt companies. All the staff got sacked. The future for all these brands is either supermarket cheap products or just gone forever. 🤬

[@mikeburgh3956]

☢️😢

[@Domane-mh8wg]

Sign of the times. The housing and car market is tanking as well so everything follows the domino effect. People are struggling to pay bills so of course a $5k toy doesn't make sense right now. It's sad to see Kona and Pole go the way side.

[@EMTBReview]

Aside from the inventory problems, the consumers are suffering too as a whole. They see the 'want' economy has shifted to a 'need' economy. Thus that hurts all industries especially the recreation marketplace.

[@EMTBReview]

More industry difficulties: Rapha closes Bentonville Headquarters office : www.bicycleretailer.com/industry-news/2024/04/25/rapha-closes-office-bentonville-says-arkansas-remains-its-american

[@mikeburgh3956]

Im sure Mike Ashley has his ears open lol

[@EMTBReview]

For sure! Who is he btw?

[@mikeburgh3956]

@@EMTBReview he buys bankrupt companies & turns them into shit. He just bought Nukeproofs IP and chain reaction & running under his Evans bicycle name. Their some articles out there on him.

[@procore123]

Where was turner bikes?

[@EMTBReview]

I believe there were there. Version 2.0 now and I think selling steel bikes.

[@MTB_Berm_Slap-qe1el]

Santa Cruz hosts their own show a week before. They have for a few years. They typically don't do Sea Otter.

[@EMTBReview]

I'm not sure that is true. None this year. Last year, they let hosted custom bike builder fabricators at their lot. They used to have an amazing space at Sea Otter for years.

[@sety409]

Maybe they feel like they don't need to, given the brand recognition? They may see it as an unnecessary expense. Part of the brand to be "the cool ones".

[@seamarsh3756]

this problem ain't going away anytime soon.. not looking good

[@EMTBReview]

It's like a plumbing blockage that needs to be cleared but can only be done slowly.

[@WoooVegas]

They will prob sell more products if the industry as a whole lowered the prices it’s not the pandemic anymore

[@EMTBReview]

Here's the thing. To clear the excess inventory, companies are having 50% off sales. That makes it very hard for competitors to sell bikes at normal prices. Screws up the used market too which is key for folks upgrading and buying new bikes. Excess inventory is like a blockage that needs to be pushed out.

[@BillyBob-ri9pm]

@@EMTBReview This is very true. It's all a terrible game of dominos.So it has a knock on effect on smaller brands many who haven't the financial clout to survive the hit. Or corporate owners like Kent who haven't the patience to wait for an upturn. Apparently Chain Reaction went belly up because their German owners abruptly withdrew a $100m credit facility because they themselves were in trouble leaving Chain Reaction with depths they couldn't pay off. And Trek & Specialised begged Shimano to open more factories to meet the extra demand back during covid. Shimano refused, they'd seen far too many boom and bust cycles (excuse pun) previously and guessed what was coming. I wonder if that's why Spesh abruptly switched to Sram? Good on you for posting about all this, so many influencers at Sea Otter just ignored the bike biz crises concentrating on the shiny new toys.

[@romma11]

No Cannondale either

[@EMTBReview]

Thanks for the input.

[@blackhorsegrind4255]

Yes I was expecting to see them and their new ebike

[@DarrinObenland]

Look at all the publicity.... Maybe a smooth marketing move

[@EMTBReview]

Someone once said there's no such thing as bad publicity. Couldn't be farther from the truth in this case IMHO :)

[@ilovephotography1254]

This sad video is a bike industry Obituary for this week's fallen.😥

[@EMTBReview]

I should make a weekly video. Missed out on Nukeproof, Vitus, Chain Reaction. I hear there are many more on the brink.

[@ilovephotography1254]

@@EMTBReview 😥

[@mikeytek]

No niner either

[@EMTBReview]

For sure. They’ve been struggling for many moons.

[@alternativereality123]

Kona became irrelevant because of insufficient advertising and just the name sounds old like Hawaiian coffee the name doesn't stand out anymore as it did in the 90s. Specialized cycles was smart enough to give the company a breather of fresh air by changing the name to S works and helps it's future capital thrive.

[@EMTBReview]

Disagree. They have one of the coolest and most recognizable brands around. I think they are struggling because they really have failed to move and progress with new bikes, full suspension, carbon fiber, and even ebikes. They had good hardtails but really haven't kept up with the times. And the last couple years with the new owners have been even harder with direction and support.

[@alternativereality123]

@@EMTBReview your so right.

[@bfranco1519]

Please stop saying post pandemic. There’s a recession (that no Democrat wants to talk about), combined with massive inflation.

[@EMTBReview]

Right on. Thank you.

[@charlesmansplaining]

In their campaign tours the Democrats talk about how strong the economy is but it's all lies.

[@grantzahara9998]

I feel like in the bike industries case all of their problems are due to the huge boom caused by the pandemic. All of the bike brands built up huge inventories expecting the demand to stay the same but it definitely dropped off hard as soon as the pandemic ended and things opened up again. Of course the recession doesn’t help these brands but a lot of their problems are because of Covid

[@GADonMc]

You really out to look up the word “recession”. I don’t think that you know what it means. We have the strongest economy in the world. Inflation was a worldwide phenomenon, but,again, we have dealt with it better than the rest of the world.

[@Dorkbike]

I'm no economist expert, but I'm not sure the US is in a true recession. This might depend more on what news you watch vs. your research. There's a fair amount of spending still going on. Inflation is a real thing and it's making most think harder about spending money on toys like high-end bikes.