CAKE reportedly faced financial hardships before filing for bankruptcy on February 1, 2024. The Swedish brand cited socioeconomic conditions and the lack of venture capital for companies in later stages of development. But today, CAKE quietly announced new ownership and the formation of a small team dedicated to moving the brand forward.
The bankruptcy announcement was shocking to many at the time, as CAKE seemed to have so much momentum, both in product development and media coverage. It had recently expanded product offerings to include motorbikes for delivery professionals and e-scooters for urban mobility.
However, since its founding in 2016, the company has only sold about 6,000 motorcycles, Breakit reported. The Swedish publication also reported in January this year that CAKE’s employees would have their salaries delayed because the company lacked enough funds to pay them.
CAKE Acquired by Norwegian Holding Group
In a press release attached to today’s Instagram post, CAKE explained the path to today’s announcement.
Shortly after its bankruptcy announcement, Brages Holding AS, a car retailer in Norway, acquired the CAKE brand and associated intellectual property. The company owner, Espen Digernes, said, “As a car retailer in Norway, we have witnessed how fast the electrification shift can go when people set their minds to it. Now, we believe the transformation in the micro-mobility sector will accelerate as well. Not only for motorbikes, but also for scooters, mopeds, and electric bikes.”
Bragnes formed a small core team, including key CAKE employees, and reinstated Petra Farm, the former CTO, as its leader. “It is an honor to be part of the next chapter in the CAKE journey. The original journey of CAKE was on the brink of success. However, there was obviously a need to pivot in certain strategic areas, and I believe there is great potential now in making these changes to evolve CAKE into a profitable company,” Petra stated in the press release.
Petra and the team reopened the former headquarters and brand store in Stockholm, Sweden, and bikes already produced are available for purchase.
GearJunkie will continue to follow and report on CAKE’s resurgence. We’ve tested and enjoyed the bikes and look forward to their continued development.
