The B.C.-based retailer had been struggling with an enormous debt burden, inventory problems and steep online competition for years. Then COVID-19 hit, shuttering stores and obliterating in-person sales.

What is going on with MEC?

MEC had lost roughly $80-million between 2017 to 2020 (excluding gains from real estate transactions), and the pandemic only made things worse. In the first seven months of its most recent fiscal year (which began in late February, 2020), MEC lost another $20.9-million.

Who owns MEC now?

Kingswood Capital Management, LP
On September 14, 2020, it was announced that MEC’s assets, including the majority of its retail stores, would be acquired by private equity firm Kingswood Capital Management, LP in a deal under the federal Companies’ Creditors Arrangement Act.

Can you still shop at MEC?

We do not currently have any MEC locations outside of Canada, but members are welcome to use mec.ca from virtually anywhere in the world.

Is MEC staying open?

MEC’s board of directors recently approved a deal that will see a Los Angeles-based private investment firm acquire MEC’s assets and the majority of its retail stores. Until then, MEC will continue to operate its e-commerce and retail stores.

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.

Is MEC really a coop?

Postmortems started quickly, with some zeroing in on MEC’s business model. The company, founded in 1971 as Mountain Equipment Co-op, may have dropped that last word from its rebranding in 2012, but it was still technically operating as a co-operative until the sale.

Can I get my $5 back from MEC?

During the transition from a co-operative to a private company, members would have to claim themselves as creditors to stake a claim on their $5 shares. But Claus says its “highly unlikely” that members would get their share value back.

Is MEC no longer a coop?

As part of the deal, MEC will no longer operate as a member-owned cooperative. It was granted protection under the Companies’ Creditors Arrangement Act, allowing it to continue operating while the transaction and other elements of the plan are completed.

How much is a MEC membership?

MEC is a co-operative, open only to its members. Membership is easily obtained by purchasing a $5 share, which confers a lifetime membership in the co-op. When making purchases online or in person, members must provide their membership number.

Did MEC get bought out?

MEC, which has about 5 million co-op members, will become a privately-owned company. Kingswood will acquire MEC’s assets through the Companies’ Creditors Arrangement Act, a Canadian law that allows insolvent companies to restructure. …

Did MEC get sold?

Iconic Canadian outdoor retailer Mountain Equipment Co-op has been sold. As part of the deal, MEC will no longer operate as a member-owned cooperative.