- CEO Espen Digernes revives Cake, acquiring the electric motorcycle company after its 2023 bankruptcy.
- Ytterborn attributes Cake’s decline to societal shifts and recession, unveiling multifaceted challenges.
- Acquisition details raise queries on staff payments, excluding subsidiaries and Taiwan properties, introducing ambiguity.
Reviving Cake: CEO Espen Digernes acquires electric motorcycle company post-bankruptcy
CEO Espen Digernes has finalised the acquisition of Cake, the Swedish electric motorcycle manufacturer that succumbed to bankruptcy in February 2023. Cake, founded in 2017, specialises in the production of high-performance electric motorcycles. It amassed $74.4 million in funding and successfully retailed approximately 6000 bikes.
At the time of its bankruptcy, Cake, CEO Stefan Ytterborn, commented:
“It is not one but several circumstances that make us end up in this situation.
Climate issues are no longer in focus; we are in a recession. It’s about us, but it’s also about the risk capital ecosystem.
At the moment, it is completely dead; there are no takers in the later phase Cake is in.”
Espen Digernes’ acquisition has prompted inquiries regarding the fate of pending payments for former staff and the operational status of Cake’s entities beyond British borders. Bankruptcy trustees confirm that the acquisition deliberately excludes stakes in subsidiaries and properties located in Taiwan.
In parallel, Florida-based eMoto has entered the scene by acquiring a substantial share of Cake’s remaining inventory in the United States. This encompasses notable models like Makka and Osa. The transaction, however, does not include Cake’s intellectual property (IP), a facet critical for the safeguarding of the brand’s integrity.
Persistent speculations regarding an acquisition found validation in a bid submitted by Gowow, reaching NOK 15 million (approximately €1.3 million). However, this bid fell short of expectations, underscoring the intricate nature of negotiations amidst Cake’s financial turmoil.
While Espen Digernes’ acquisition injects optimism into Cake’s future, the overarching impact on former staff and international subsidiaries remains shrouded in uncertainty. Industry observers keenly track these developments. However, we’re seeing external backers saving promising EV companies, such as Luxor Capital Group bringing Volta back. Could this signal a level of investor confidence in the future of the industry?
