The Revival of the Swedish Electric Motorcycle Maker Cake

Cake, the Swedish electric motorcycle maker, has been revived after entering bankruptcy in February 2024. Discover how Brages Holding AS and key team members are steering the brand towards a new future.

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In February 2024, the electric motorcycle community was shaken when Cake, the Swedish maker of electric motorcycles, entered bankruptcy proceedings. The news was a blow to enthusiasts and environmentalists alike who had admired Cake’s innovative designs and eco-friendly approach. However, the story took an unexpected turn in the United States when Michael Joyce, owner of the Florida-based eMoto shop, announced that he had acquired nearly all of Cake’s remaining bikes and parts in the US.

This acquisition was puzzling, especially considering Cake’s bankruptcy proceedings in Sweden were ongoing. The Swedish bankruptcy administrator expressed surprise that these assets had changed hands before the proceedings had fully concluded. This development hinted at a more complex and intriguing narrative surrounding Cake’s financial woes and potential revival.

A New Chapter for Cake

Rumours soon started circulating about a new owner potentially purchasing all of Cake’s assets through the Swedish bankruptcy administration firm. By June, these rumours were confirmed: Cake was making a comeback. The buyer was revealed to be Brages Holding AS. It is a Norwegian firm owned by Espen Digernes, a car dealer specializing in Toyota and Lexus vehicles in Norway.

Given Norway’s aggressive push towards electric vehicles (EVs), Digernes’ interest in Cake makes sense. In January 2024, Reuters reported that EVs had taken an 82% market share in Norway. This underscored the nation’s commitment to phasing out internal combustion engine (ICE) cars by 2025. This context is crucial for understanding the strategic move by Brages Holding AS to acquire Cake.

Official Announcement and Future Plans

In a statement, Digernes highlighted his vision for Cake’s future. “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. When we first connected with CAKE as a retailer, we fell in love with their products, the design, the craftsmanship, and the story behind CAKE.”

“Our goal in acquiring CAKE was to evolve the brand. We aim to scale CAKE by building a robust retailer distribution network and transforming a remarkable Swedish initiative into a Scandinavian success.”

These ambitions are indeed lofty, and the revived Cake has significant challenges ahead. Historical insights from major Swedish business publications like Dagens Industri and Breakit.se provide a deeper understanding of Cake’s turbulent journey through bankruptcy.

Financial Complexities and Legal Disputes

Original Cake founder and CEO Stefan Ytterborn, along with investors Creandum and AMF (a Swedish pension fund), were significant shareholders in the original company. However, they received no financial returns from the bankruptcy, as other creditors took priority. Adam Lewis, a former investor, even threatened legal action against Ytterborn if he or any associates took part in the post-bankruptcy purchase of Cake. Ytterborn has since launched a consulting firm, To Be, with several former Cake designers.

What Lies Ahead for Cake

Despite the legal and financial hurdles, the revived Cake aims to continue its legacy. The official announcement revealed that key former team members, including CTO Petra Färm, will remain with the company. Cake has reopened its original headquarters and brand store in Stockholm, Sweden.

The road ahead for Cake is uncertain. However, the commitment from Brages Holding AS and the passion of the remaining team members suggest a determined effort to succeed. As the electric mobility market continues to grow, Cake’s return could mark an exciting new chapter for the brand and its followers.