It’s the end of an era for a popular outdoor equipment retailer. Mountain Equipment Co-op (MEC) will be a co-operative no-more. But a new investor will keep the company operating.
MEC says its board of directors has unanimously approved a deal in which a Los Angeles-based private investment firm will acquire the assets, including the majority of its retail stores.
Vancouver-based MEC says the transition from a co-operative structure to a subsidiary of Kingswood Capital Management is needed to ensure a stable future for the business.
The retailer said it has been granted court protection under the companies’ creditors arrangement act (CCAA), allowing it to continue operating e-commerce and retail stores while the transaction and other elements of the plan are completed.
It says it will accept gift cards and honour warranties during this period.
No financial details were disclosed.
Kingswood managing partner Alex Wolf said in a statement he is “honoured” to work with his new Canadian operating partners and that his company is committed to continue to “inspire and equip” Canadians who enjoy an active outdoor lifestyle.
Long-standing MEC member and Canadian Eric Claus will lead Kingswood’s newly formed Canadian affiliate as chair and CEO.
With files from The Canadian Press