The outside of a Mountain Equipment Co-Op is seen in North Vancouver, Monday, Dec. 9, 2017. Mountain Equipment Co-op says its board of directors has unanimously approved a deal in which Kingswood Capital Management will acquire MEC’s assets, including the majority of its retail stores. THE CANADIAN PRESS/Jonathan Hayward

Mountain Equipment Co-op to be sold to private corporation

Vancouver-based MEC transition is from co-operative structure to a subsidiary of Kingswood Capital Management

Mountain Equipment Co-op says its board of directors has unanimously approved a deal in which a Los Angeles-based private investment firm will acquire MEC’s 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 says 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.

Kingswood managing partner Alex Wolf says in a statement he is “honoured” to work with his new Canadian operating partners, adding 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.

MEC chair Judi Richardson says the “difficult decision” to sell MEC follows an extensive examination of options after the company was unable to overcome years of persistent financial challenges made worse by the impact of the COVID-19 pandemic.

“Today’s announcement, including the transition from a co-operative structure, is creating a positive path forward for MEC,” she said.

“Kingswood’s commitment to honouring the MEC ethos and the solid financial footing that this transaction will provide gives us tremendous confidence in the future.”

No financial details were provided.

Alvarez & Marsal Canada Inc. has been appointed by the court as the monitor under the CCAA proceedings.

The transaction remains subject to regulatory approvals and is expected to close in the fourth quarter of 2020.

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Orange Shirt Society launches first textbook on residential school history

Phyllis Webstad and Joan Sorley worked on the 156-page book to help educate students

Williams Lake city council to approve whale mural

Through e-mail poll of council mural was accepted, it will be ratified at a regular meeting

Culture Days showcases diversity of talent in Quesnel

The Quesnel Downtown Art Walk kicked off Sept. 26

PHOTOS: Barkerville planning for Halloween events and virtual field trips

This year’s Halloween events will focus on traditional trick or treating, and tickets are limited

105 new COVID-19 cases, 1 death as health officials urge B.C. to remember safety protocols

There are currently 1268 active cases, with 3,337 people under public health monitoring

Horgan vows to replace B.C.’s shared senior care rooms in 10 years

$1.4 billion construction on top of staff raises, single-site work

More sex abuse charges laid against B.C. man who went by ‘Doctor Ray Gaglardi’

Investigators now focussing efforts on alleged victims within the Glad Tidings Church community

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Orange Shirt Day lessons of past in today’s classrooms

Phyllis Webstad, who attended St. Joseph’s Mission Residential School in British Columbia, is credited for creating the movement

Greens’ Furstenau fires at NDP, Liberals on pandemic recovery, sales tax promise

She also criticized the NDP economic recovery plan, arguing it abandons the tourism industry

U.S. Presidential Debate Takeaways: An acrid tone from the opening minute

Here are key takeaways from the first of three scheduled presidential debates before Election Day on Nov. 3

Most Read