Who bought Mountain Equipment Coop?
Kingswood Capital Management Ltd.
The co-op was bought by a Los Angeles private equity firm, Kingswood Capital Management Ltd. Terms of the deal weren’t released, but Kingswood has created a Canadian affiliate to run the firm, led by Canadian retail veteran Eric Claus. News of the sale was met with dismay by some of the co-op’s five million members.
Did MEC get bought out?
Iconic Canadian outdoor retailer Mountain Equipment Co-op has been sold. The business said Monday that its board of directors unanimously approved a deal in which a Los Angeles-based private investment firm called Kingswood Capital Management will acquire its assets, including the majority of its retail stores.
What happens to my MEC shares?
Under the new ownership, the 22-location company will eliminate its co-op structure, ending the 49-year run of Canada’s largest consumer cooperative. The new CEO and longtime MEC member Eric Claus stated publicly that it’s “highly unlikely” the company’s five million members will get their $5 shares back.
Did MEC sell?
The Association of Canadian Mountain Guides said, “MEC (Mountain Equipment Coop) has been sold. MEC has been a valued partner of the ACMG.”
Is Mountain Equipment Co-op publicly traded?
At the end of the transaction, MEC will be a privately owned company. MEC says the co-op will continue to exist for a period of time after the sale completes but will no longer be operating a retail business.
Is MEC in trouble?
To illustrate, net operating losses of MEC are $80 million for the period since 2017. The issues arising from increased costs, debt load, and liquidity strains continued into 2020, as evident in the fiscal year ending Feb. 23, 2020 – MEC experienced a net loss of approximately $22.7 million.
Who now owns MEC?
Kingswood Capital Management’s
Mountain Equipment Co-op (now called 1077 Holdings Co-Operative) is a Canadian co-op that started the MEC outdoor gear retail brand. The MEC brand name, assets and store leases were purchased by the American private investment firm Kingswood Capital Management’s subsidiary Mountain Equipment Company in October 2020.
Is MEC not for profit?
Simply put, this is because of the non-profit COOP status of MEC. This status exists because of a loophole in the cooperative act that the founders of MEC were able to take advantage of. This act was put in place originally for farmers looking to get fair prices for their crops.
Is MEC not a coop anymore?
The sale of MEC’s business, and the decision to move the business away from the co-operative model was, after all, a very difficult decision – but it was the right one.
Is MEC owned by REI?
MEC was originally the brainchild of six Vancouver mountaineers who started in the 1970s making small, cross-border runs to outdoor equipment retailer REI, whose co-operative structure MEC shares.
Where is Mountain Equipment made?
We design products for our owned brands, and we have strategic manufacturing partners in China, Vietnam, Myanmar and Hungary.
Is MEC closing in Canada?
The Brampton Guardian first reported last week that MEC, which was sold last year to the U.S.-based private equity firm Kingswood Capital Management, will close the Brampton facility “by the end of May, eliminating dozens of jobs.”