CEO Espen Digernes acquires bankrupt Swedish e-motorbike manufacturer Cake

Good news today for e-motorbike company Cake.

Espen Digernes, the CEO of Brages Bilforretning AS, a car dealership in Ålesund, Norway, has acquired the Swedish electric motorcycle company, according to news reports today in Swedish newspaper Breakit. 

This acquisition comes after Cake filed for bankruptcy in February this year.

Founded in 2017, the company designs and manufactures high-performance electric on and off-road motorcycles. It previously raised. $74.4 million in funding and has sold about 6000 bikes.

At the announcement of its bankruptcy, Stefan Ytterborn, Founder and CEO of Cake, shared:

"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."

It's unclear what the acquisition means for former staff waiting payments, or Cake's entities outside of Sweden. Bankruptcy trustee Jakob Callmander told Breakit that the purchase does not include shares in subsidiaries or properties in Taiwan.

Earlier this week, Florida shop eMoto purchased most of Cake's remaining US inventory from Cake's US entity, specifically buying the Makka and Osa bikes. 

Owner Michael Joyce told bike publisher RideApart:

"We purchased a few hundred units. It is not every single remaining bike, but the vast majority."

Along with the bikes, eMoto acquired the necessary parts to help service and maintain Cake products and provide technical support. 

However, a Cake bankruptcy administrator representative told RideApart that Emoto had not purchased any IP held by Cake 0 Emission AB bankruptcy estate:

"A buyer of the IP will, of course, take legal action against anyone selling Cake-branded goods." 

Rumours have circulated about an acquisition, with multiple hats in the ring as buyers, including electric motorbike company Gowow. Tech.eu understands that Cake received a bid of NOK 15 million (around €1.3 million), which was considered insufficient by the bankruptcy trustee. 

While the full impact on previous staff and international entities remains to be seen, the acquisition offers hope for Cake's future and support for existing bike owners. 

Lead image: Cake. Photo: uncredited.