For a while in early 2024, almost everyone in the bike world was asking the same thing: are Kona Bikes going out of business? From the outside, it looked like the answer was yes. Dealers were frustrated, staff got let go, and Kona’s longtime Bellingham shop closed its doors. The brand even pulled out of big events, including the Sea Otter Classic.
But things have been moving fast behind the scenes. If you follow the bike industry, you know Kona has had challenges for years. Now, after a whirlwind few months—including a shutdown and a buyback—you might be surprised at what’s actually happening with this classic mountain bike brand.
Where Did Things Go Wrong for Kona?
Kona used to be one of those names you’d always see on the trails or at your local shop. For decades, the brand earned pretty loyal riders, especially among mountain bikers. But over the last few years, Kona hit some real bumps.
Like every bike company, Kona faced a weird, unpredictable market after the pandemic bike boom cooled off. Suddenly, they found themselves with warehouse shelves packed with bikes—way more than they could sell easily. That extra inventory meant big financial stress.
To try to solve the problem, Kona made some risky choices. Most notable: the buy-one-get-one-free (BOGO) bike sale earlier in 2024. It might have cleared out some bikes, but it confused and even upset dealers, who were already struggling to compete with direct-to-consumer prices.
Inside the Shutdown: Kent Outdoors Steps Away
By early 2024, Kona’s issues were piling up. The company was owned by Kent Outdoors, an outdoor industry group based in the U.S., who had bought Kona in 2021. Kent Outdoors had hoped to boost the brand to new heights, but steady losses and growing inventory forced their hand.
In April, Kent Outdoors officially announced the shutdown of Kona Bikes. They laid off remaining staff, canceled all upcoming events, and let dealers know the brand would pause operations. The Bellingham, Washington, storefront—Kona’s shop and a mainstay since 2011—went dark. For customers and fans, it really did look like the end.
If you were following along on bike forums or social media, you probably saw a lot of speculation and disappointment. After decades in the business, could this really be it for Kona?
Founders Step Back In: The Buyback Story
But that wasn’t the end of the story. Just weeks after the shutdown, Kona’s original founders—Dan Gerhard and Jake Heilbron—came back into the picture. These are the same two guys who launched Kona in 1988 and turned it into a key name among mountain bikers around the world.
Gerhard and Heilbron began negotiating with Kent Outdoors to buy the company back. They confirmed the deal in mid-2024. Though the sale price wasn’t public, it’s clear the founders saw something worth saving, despite all the recent problems.
Their first public statements were pretty low-key but honest. They explained they were taking charge once again and would try to rebuild the trust of customers and dealers. They didn’t sugarcoat the situation, saying there were “real challenges” ahead and a lot of work to do.
What Went Wrong Under the Old Ownership?
If you ask around in the bike industry, you’ll hear frustration from Kona dealers and loyal fans about the way the brand was being run. During the Kent Outdoors period, Kona shifted hard toward direct-to-consumer sales. This meant bikes once sold through shops could now be delivered right to your door, often at big discounts.
That may sound like a good deal for customers—but it left bike shops feeling stuck. They had inventory they couldn’t sell at those low prices. Relationships between Kona and their network of shops started to fray badly.
Then came the BOGO sale, and that really strained things further. It signaled desperation to clear out inventory, but at the same time, it risked turning off both dealers and long-time riders who felt Kona was losing its way.
So, Is Kona Bikes Out of Business?
Right now, it’s complicated. Kona, as a brand under Kent Outdoors, actually did shut down normal operations. The warehouse was idle. Staff were let go. There was a moment when, by any normal definition, Kona was out of business.
But the founders’ buyback has changed that. Kona Bikes technically isn’t “permanently out of business”—they’re attempting a comeback under their original leadership. Right now, they’re not running business as usual, but they are taking real steps to relaunch the company.
The Plan for a Comeback
The first thing Gerhard and Heilbron did was announce a stop to direct-to-consumer sales. They said they would be refocusing on rebuilding their relationship with local bike shops—the same strategy that made Kona a household name among serious riders in the first place.
Next, they need to sell off the remaining old bikes, especially the leftover inventory that’s been hanging around since 2023. That’s a real challenge. The market is still pretty slow, and a lot of shops are gun-shy about taking on too much inventory.
But the founders are confident that by going back to basics—smaller production, more personal dealer relationships, and a simple lineup—they can slowly restore the brand’s good name.
Dealers and Community: Can Trust Be Rebuilt?
If you talk to bike shop owners who once carried Kona, there’s a mix of relief and skepticism. Many had been burned by the fire-sale tactics and felt left out by the previous owners. But with the founders back, some shops say they’re open to giving Kona another chance—if the company can prove it’s really changing direction.
On bike forums, there are riders who would love to see the old Kona spirit come back. The brand meant something special for a lot of folks who bought their first hardtail or trail bike from a small local store, not an online warehouse.
It comes down to how much faith the community still has and whether Kona’s new-old team can deliver on promises.
Getting Back into the Market
What’s this mean if you want to buy a Kona right now? The options are still limited. Most of the usual shops aren’t stocking new inventory yet, and the company is still working out its supply and sales plan. There are plenty of older bikes floating around—especially after the shutdown fire sale—but new models won’t be rolling out quickly.
It could take months, or maybe longer, to see Kona return to the level of choice and availability it had before all this drama started. The founders have asked fans and dealers to be patient while they clean up the mess and put a real plan in place.
If you’re the type of rider who likes supporting brands with local roots and a story, it might be worth waiting to see how things play out.
The Road Ahead: Lots of Work, No Guarantees
Nobody close to Kona is pretending the turnaround will be easy. The bike market is still slow. Many dealers are overly cautious. And the inventory left behind by Kent Outdoors hangs over the relaunch like a cloud.
Still, by dropping the old deep discounts and going back to what worked—fewer, more focused models, and a cooperative dealer network—the founders believe they’ve got a shot at revival.
If you look at other companies in the outdoor world, there are stories much like Kona’s. A business gets bought out, stumbles under new ownership, then returns to original hands with all the old baggage. Sometimes the comeback works; sometimes it doesn’t. The bike industry is tough, and even famous names can get lost if they can’t adapt.
For anyone who’s interested in more updates or details about transitions in outdoor brands, sites like Sera Business are a good place to keep tabs on industry shakeups and comebacks. The Kona story is just one example of how unpredictable things can get in this market.
So, What’s the Bottom Line for Kona?
As of now, Kona Bikes is not permanently out of business. It came very close earlier in the year, when Kent Outdoors pulled the plug. But with Dan Gerhard and Jake Heilbron back in charge, the company has life again—though that life comes with a ton of challenges.
Kona’s future will depend on whether the founders can turn around the damage, earn back the trust of old partners, and sell enough bikes to actually make the business sustainable again. It’s a tall order, but fans and shops have reasons to be cautiously hopeful.
For now, if you care about the brand, it’s a wait-and-see situation. Kona’s not dead, but it’s not on solid ground yet. We’ll be watching to see whether this legendary brand can make the comeback that its founders—and a lot of loyal riders—are hoping for.