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

Updated web map info and features available from Fraser Valley Regional District at fvrd.ca/mapping. (FVRD)
Updated web map from Fraser Valley Regional Distict can be easily searched

New and improved web map from FVRD is public resource for property owners

A vehicle incident eastbound on the Trans-Canada Highway in Langley at 264th Street is causing traffic in the area on Monday, Jan. 25, 2021. (Drive BC)
TRAFFIC: Eastbound Highway 1 vehicle incident in Langley

Traffic reduced to single lane eastbound

Kent Harrison Search and Rescue brought a man to safety, and awaiting paramedics, after a 20-foot fall down an embankment on Jan. 23, 2020, on Harrison West Forest Service Road. (Kent Harrison Search and Rescue photo)
Rescue crew lifts man up 20-foot embankment near Harrison Lake

Kent Harrison Search and Rescue says this is the fifth call already this year

Police tape is shown in Toronto Tuesday, May 2, 2017. (Graeme Roy/The Canadian Press)
CRIME STOPPERS: ‘Most wanted’ for the week of Jan. 24

Crime Stoppers’ weekly list based on information provided by police investigators

A mallard duck swims through Salish Pond in Chilliwack on Saturday, Jan. 23, 2021. (Jenna Hauck/ Chilliwack Progress)
WEATHER: Snow, rain in forecast for Fraser Valley

Fraser Valley has been treated to more than a week of mostly sunny weather, but it’s about to end

U.S. Senator Bernie Sanders sits in on a COVID-19 briefing with Dr. Bonnie Henry, provincial health officer, and Adrian Dix, B.C. minister of health. (Birinder Narang/Twitter)
PHOTOS: Bernie Sanders visits B.C. landmarks through the magic of photo editing

Residents jump on viral trend of photoshopping U.S. senator into images

A woman injects herself with crack cocaine at a supervised consumption site Friday, Jan. 22, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Drug users at greater risk of dying as services scale back in second wave of COVID-19

It pins the blame largely on a lack of supports, a corrupted drug supply

Wet’suwet’en supporters and Coastal GasLink opponents continue to protest outside the B.C. Legislature in Victoria, B.C., on Thursday, February 27, 2020. THE CANADIAN PRESS/Chad Hipolito
‘We’re still in it’: Wet’suwet’en push forward on rights recognition

The 670-km Coastal GasLink pipeline was approved by B.C. and 20 elected First Nations councils on its path

Jennifer Cochrane, a Public Health Nurse with Prairie Mountain Health in Virden, administers the COVID-19 vaccine to Robert Farquhar with Westman Regional Laboratory, during the first day of immunizations at the Brandon COVID-19 vaccination supersite in Brandon, Man., on Monday, January 18, 2021. THE CANADIAN PRESS/Tim Smith - POOL
Top doctor urges Canadians to keep up with COVID measures, even as vaccines roll out

More than 776,606 vaccines have been administered so far

From the left: Midway RCMP Csts. Jonathan Stermscheg and Chris Hansen, Public Servant Leanne Mclaren and Cpl. Phil Peters. Pictured in the front are Mclaren’s dog, Lincoln and Peters’ dog, Angel. Photo courtesy of BC RCMP
B.C. Mounties commended for bringing firewood to elderly woman

Cpl. Phil Peters said he and detachment members acted after the woman’s husband went to hospital

Dr. Jerome Leis and Dr. Lynfa Stroud are pictured at Sunnybrook Hospital in Toronto on Thursday, January 21, 2021.THE CANADIAN PRESS/Frank Gunn
‘It wasn’t called COVID at the time:’ One year since Canada’s first COVID-19 case

The 56-year-old man was admitted to Toronto’s Sunnybrook Health Sciences Centre

An Uber driver’s vehicle is seen after the company launched service, in Vancouver, Friday, Jan. 24, 2020. Several taxi companies have lost a court bid to run Uber and Lyft off the road in British Columbia. THE CANADIAN PRESS/Darryl Dyck
Taxi companies lose court bid to quash Uber, Lyft approvals in British Columbia

Uber said in a statement that the ruling of the justice is clear and speaks for itself

A 75-year-old aircraft has been languishing in a parking lot on the campus of the University of the Fraser Valley, but will soon be moved to the B.C. Aviation Museum. (Paul Henderson/ Chilliwack Progress)
Vintage military aircraft moving from Chilliwack to new home at B.C. Aviation Museum

The challenging move to Vancouver Island will be documented by Discovery Channel film crews

Most Read