Introduction

In a surprising turn of events, Mountain Equipment Company (MEC), a beloved outdoor retailer based in Vancouver, is gearing up for its second sale in less than five years. Founded in the 1970s, MEC was once a cooperative that boasted over 3.5 million members, making it Canada’s largest consumer co-op.

Acquisition and Recent Developments

However, the company has faced significant upheaval since being acquired by Kingswood Capital Management, an American private equity firm, in 2020. Recent communications obtained by CityNews indicate that MEC is 'in the process of being sold' again, with a memo sent to suppliers confirming that a sale of the company's shares is imminent.

Current Situation and Supplier Concerns

While the company will retain its legal entity, it will operate under new ownership, which has yet to be revealed. The sale is expected to be finalized by the end of this month or early February. This shake-up follows years of internal controversy, including disputed board activities that marred its transition to a private investment model. Suppliers express concern about the company's financial stability, noting that MEC has failed to pay invoices for months and has been placed on hold with a number of creditors.

Supplier Reactions and Member Impact

One supplier commented, “The news of the sale doesn’t shock those of us close to the situation, we're just waiting to see how this will all unfold.' This situation has raised questions about MEC's financial health and how the transition will impact its 3.5 million members, many of whom are still hopeful for a return to the cooperative roots that once defined the brand.

Official Response and Future Outlook

In an official response, MEC acknowledged the swirling 'rumors' surrounding the sale but stated, 'there is currently no news to share.' As the outdoor retail landscape continues to evolve, all eyes are on MEC, with stakeholders eagerly awaiting updates that will influence the future of this iconic Canadian brand.

Conclusion

Stay tuned as more details emerge, and prepare for waves of change in one of Canada’s most cherished outdoor institutions!