Thursday, December 2, 2021
ADVT 
National

Kingswood to acquire Mountain Equipment Co-op

Darpan News Desk The Canadian Press, 14 Sep, 2020 10:23 PM
  • Kingswood to acquire Mountain Equipment Co-op

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.

Photo courtesy of MEC. 

MORE National ARTICLES

Dozens of people attempt to claim lost cash: RCMP

Dozens of people attempt to claim lost cash: RCMP

The Mounties had asked people to refrain from contacting police in attempts to guess those details, warning that their claims would constitute fraud.

Dozens of people attempt to claim lost cash: RCMP

Further lockdowns possible if COVID-19 cases keep rising: Ford

Further lockdowns possible if COVID-19 cases keep rising: Ford

The premier said the lockdowns would be regional, and not mirror the broad approach taken during the first wave of the virus in March.

Further lockdowns possible if COVID-19 cases keep rising: Ford

Experts assess the COVID risks of Halloween

Experts assess the COVID risks of Halloween

The scaled-back festivities are yet another blow to normal life wrought by the novel coronavirus, bemoans Vicente, who loves the holiday.

Experts assess the COVID risks of Halloween

$10M mark surpassed by Surrey Makes PPE manufacturers

$10M mark surpassed by Surrey Makes PPE manufacturers

The program’s goal is to ensure that critical PPE is produced, sourced and are readily available to Canadians.

$10M mark surpassed by Surrey Makes PPE manufacturers

MLA Sonia Furstenau wins B.C. Green leadership

MLA Sonia Furstenau wins B.C. Green leadership

Horgan set off election speculation last week when he said the Green party he made an agreement with three years ago that allowed the NDP to form a minority government has changed.

MLA Sonia Furstenau wins B.C. Green leadership

B.C. announces early lung cancer screening program

B.C. announces early lung cancer screening program

Premier John Horgan says 70 per cent of all lung cancers are diagnosed at an advanced stage, but the program expected to begin by the spring of 2022 would improve survival rates.

B.C. announces early lung cancer screening program

PrevNext