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

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

The Better Business Bureau is reminding people to do their research before starting any home improvement projects this spring. (Black Press Media file photo)
Don’t get scammed on home improvements, warns Better Business Bureau

Scams typically involve paying cash upfront for jobs that never get done, says BBB

A member of the Belmont Secondary School in Langford has tested positive for COVID-19, the Sooke School District announced Thursday afternoon. (Black Press Media File Photo)
Positive COVID-19 case identified at Belmont Secondary School in Langford

Other school members could’ve been exposed on April 20

Starting in June, Government Street will be closed to most vehicles between Humboldt and View streets. A section of Government Street was transformed into a pedestrian-priority walkway in the wake of COVID-19. (Black Press Media file photo)
Victoria plans 10-hour closures of Government Street come June

City’s business relief plan extended, Government St. from Humboldt to View closed noon to 10 p.m.

As part of the province’s strategy to combat the opioid overdose crisis, take-home naloxone kits have been distributed throughout the province. (Courtesy of Gaëlle Nicolussi)
Vancouver Island could be at its worst point of overdose crises yet: medical health officer

Island Health issued overdose advisories for Victoria, various communities in the last two weeks

While Buccaneer Days public events are cancelled again, such as the annual parade, a home and business decorating contest will allow the spirit of the event to live on. (Facebook)
Esquimalt Buccaneer Days COVID-19 cannon fodder again

Annual celebration cancelled a second time, decorating contest full steam ahead

Canadian Prime Minister Justin Trudeau and United States President Joe Biden smile as they say farewell following a virtual joint statement in Ottawa, Tuesday, February 23, 2021. THE CANADIAN PRESS/Adrian Wyld
Trudeau pledges to cut emissions by 40% to 45% by 2030, short of U.S. goal

Trudeau announced target during a virtual climate summit convened by U.S. President Joe Biden

(Black Press Media file photo)
POLL: Have rising prices caused you to give up hope of buying a home?

Do you have a spare 50 grand or so kicking around (have… Continue reading

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS (8477) or visit the website victoriacrimestoppers.ca for more information.
Greater Victoria Crime Stoppers wanted list for the week of April 20

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

MLA Shirley Bond, right, answers questions during a press conference at Legislature in Victoria, B.C., on February 19, 2019. THE CANADIAN PRESS/Chad Hipolito
Former B.C. gaming minister says she wasn’t told directly about dirty cash flowing to casinos

Shirley Bond said Thursday civil forfeiture, gang violence and gambling addiction were also major concerns in 2011

RCMP Constable Etsell speaks to tourists leaving the area at a police roadblock on Westside Road south of Fintry, B.C., Thursday, July 23, 2009. THE CANADIAN PRESS/ Yvonne Berg
B.C. police say they take ‘exception’ to conducting roadblocks limiting travel

Asking the police to enforce roadblocks exposes officers to further risk and possible COVID-19 infections, says federation president Brian Sauve

The conservation service confirmed they do not relocate cougars from settled areas but that euthanasia is not necessarily the fate for an animal in the Fanny Bay area. The hope is that the animal will move on to wild areas. (File photo)
Woman hopes cat-stalking Fanny Bay cougar can avoid euthanization

Conservation officers do not relocate the animals from Vancouver Island

Tofino residents expressed frustration over a recent post by Long Beach Lodge owner Tim Hackett that falsely claimed all residents have been vaccinated. (Westerly file photo)
Resort owner apologizes for suggesting Tofino is safe to travel to

Long Beach Lodge owner Tim Hackett apologizes to community and visitors

BC Hydro released a survey Thursday, April 22. It found that many British Columbians are unintentionally contributing to climate change with their yard maintenance choices. (Pixabay)
Spend a lot of time doing yard work? It might be contributing to climate change

Recent BC Hydro survey finds 60% of homeowners still use gas-powered lawnmowers and yard equipment

Journal de Montreal is seen in Montreal, on Thursday, April 22, 2021. The daily newspaper uses a file picture of Prime Minister Justin Trudeau dressed in traditional Indian clothing during his trip to India to illustrate a story on the Indian variant of the coronavirus. Paul Chiasson/The Canadian Press
Montreal newspaper blasted for front-page photo of Trudeau in India

Trudeau is wearing traditional Indian clothes and holding his hands together in prayer beside a caption that reads, ‘The Indian variant has arrived’

Most Read