Kona Founders Reclaim Iconic Brand
In a surprising turn of events, the founders of Kona Bicycles have repurchased the beloved brand from private equity ownership. This move comes at a crucial time for the company, which had been struggling under its previous owner, Kent Outdoors.
A few weeks ago, Kona Bicycles staff traveled from Washington State to Monterey, California, for the Sea Otter Classic. However, they were soon instructed to pack up and return to their headquarters in Ferndale, Washington. The brand was in turmoil, and Kent Outdoors announced they were seeking a buyer.
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Kona’s challenges began during the pandemic. The bike industry experienced a volatile boom-and-bust cycle, with many brands selling out their seasonal stock by the Fourth of July in 2020. The founders had sold Kona to Kent Outdoors, a company once known for making bikes but had since become a holding company for various outdoor brands like Arbor Snowboards, Bote, Connelly, O’Brien, and Onyx.
Kent Outdoors’ attempt to implement a consumer-direct sales model did not go well. Retailers dropped the brand because the pricing undermined their profits. When inventory levels were finally restocked, the company found itself overstocked and resorted to an unprecedented buy-one-get-one-free promotion.
Leadership instability further plagued Kona, with four CEOs taking the helm since 2023. Amid this turmoil, founders Jake Heilbron and Dan Gerhard decided to buy back the company. In a letter to the industry, they expressed their disappointment with how the brand had been managed: “We believed that the new owners would carry our vision forward and continue to build great bikes, employ great people, and deliver on the promise of quality, fun, and a little weirdness that had defined Kona for so long. Unfortunately, that plan unfolded quite differently, so now we’re buying Kona back.”
Heilbron and Gerhard have ended the consumer-direct sales model, returning to the brand’s roots of supporting a network of bike shops. Known for its quirky and independent spirit, Kona produces a range of e-bikes, including commuters, hardtail eMTBs, full-suspension eMTBs, and gravel e-bikes.
The new/old owners are focused on reestablishing their dealer network and setting a new pricing structure. Although they do not plan to repeat the buy-one-get-one-free promotion, they anticipate offering aggressive pricing to help retailers stock their bikes and e-bikes.
