The Swedish company Cake Motorcycles, specialized in the electric mobility sector, would have declared itself in bankruptcy economic situation just a few days ago, as reported by several media outlets in the country.
The possible reason for having reached this current situation would be related to the impossibility of finding the necessary financing to be able to continue with the business activity.
To tell the truth, we have not heard from Cake for several months, since last May the Nordic company announced the birth of Cake Enduro Factory, the Swedish brand’s sports team. So Stefan YtterbornCEO and founder of Cake commented:
“The brand has self-imposed to accelerate towards a zero-emissions society, combining emotion with responsibility, and in this sense the sports scene has enormous potential to convey this message.”
And continues: “This initiative is crucial to having the ability to beat traditional motorcycles on their own territory, becoming a clear start to even look at, consider and be able to get your first electric racing machine.”
Lack of financing as the main factor in Cake’s bankruptcy
Apparently, since then things have not gone as expected by the Swedish brand. As we have learned thanks to our colleagues at Ride Apart, just a few weeks ago the brand had to issue a statement warning that 264 units of Cake Kalk&, Kalk Ink& and Kalk:workmanufactured between 2018 and 2023, were at risk of catching fire due to a problem in their batteries.
The brand reported that in the following weeks it would begin to replace these defective batteries with new ones, something that at the moment is not clear that will happen as the economic future of the company is planned. Cake But what are the real reasons for this? bankruptcy economical by the Swedish firm?
According to Dagens Industri, a Swedish financial newspaper, a recent round of financing between the company and different investors interested in becoming part of it, would have ended resoundingly on January 31.
The conclusion is that currently Cake requires 80 million Swedish crowns, about 7 million eurosin order to continue with the activity within the brand and exit the economic bankruptcy.
In fact, as of today, its 139 employees would not even have received last month’s payroll, a fact that highlights the bankruptcy situation that the brand is going through at this current moment. Ytterborn tells Dagens Industri:
“It is not one, but several circumstances that have led us to end up in this situation. Climate issues are no longer the focus, we are in a recession. It’s about us, but also about the venture capital ecosystem. At this moment he is completely dead, in the last phase that Cake is in there is no one who will accept him.”
Another problem that seems to be part of the economic bankruptcy Cake is the lack of international distributors, where potential customers can see and try any of the models that the brand offers within its current range. According to Ytterborn himself, it is difficult for someone to pay what a motorcycle of his brand costs without even having tried it before.
Finally, there are the cold figures, where Cake has not achieved the sales objectives that would keep it afloat financially. Last 2023 they registered about 6,000 units, but in order to be profitable They should be marketing between 7,500 and 10,000 copies per season.
All this, together with the aforementioned lack of financing on the part of some investors initially interested in becoming part of a Swedish business conglomerate, have led Cake to the economic bankruptcy.
For now, the brand has not been mentioned in this regard, so we will have to wait for the next few days or weeks to be able to expand this information and know all the details that have led the Nordic firm to this dead end.