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

Sylvan Lake woman says Town’s response time to concerns isn’t enough

Glenda Jackman says it took almost a month for the Town to act on her complaint about a playground

Central zone down to 19 active COVID-19 cases on Thursday

Provincially, 158 new COVID-19 cases were identified

Alberta politicians reject throne speech

Premier Kenney disapointed with lack of support for Alberta energy

Wolf Creek Public Schools receive $2.5 M for COVID costs

Funds will largely go towards PPE and additional cleaning, sanitizing

Central zone has 20 active cases of COVID-19

Province identified 143 new cases across Alberta on Wednesday

Alberta’s top health official says province is not in a second wave of COVID-19

Dr. Deena Hinshaw said Thursday that Alberta had identified 158 new cases in the province

Millet Agriplex to become a hub for indoor soccer

Wetaskiwin Soccer Club will be operating out of the Millet Agriplex this season.

‘We’re losing what makes the Parkland so distinctive,” conservation specialist says

The Lacombe district will lose two sites with provincial park status: JJ Collett and the Narrows

Ermineskin Kindergarten has a confirmed case of COVID-19

The school has shut down and Cohort 2 is in self-isolation

Hundreds die from opioid overdoses in Alberta as COVID-19 pandemic hit

Jason Luan said the province is not alone in seeing a rise in deaths,

Wetaskiwin/ Camrose RCMP conduct a joint forces initiative with Camrose Police Service

The multifaceted joint forces initiative with on Sept. 23, 2020 proved very successful.

‘Won’t be gathering for Thanksgiving:’ Trudeau says COVID-19 2nd wave underway

In all, COVID-19 has killed about 9,250 people in Canada

Most Read