Among protests of the sale by co-op members, a satisfactory solution to MEC’s massive debt problem never materialized, so Kingswood Capital Management, LP announced today that it has completed its acquisition of substantially all of MEC’s assets through the Companies’ Creditors Arrangement Act.
The U.S.-based company said its acquisition “creates a positive path forward for MEC, strengthening the brand, preserving jobs and opportunity for employees, and enabling MEC to continue to be the outdoor supplier of choice for Canadians.” MEC will be led from a headquarters in Vancouver by CEO Eric Claus, an experienced Canadian retail executive.
“We are passionate about MEC,” said Claus, who pointed to plans to keep 21 of MEC’s 22 stores open and hire more than 85% of the active staff. “We believe we can make MEC better than ever while remaining true to its values and ideals, by investing in the store and online experiences and focusing on delivering outstanding gear and advice to MEC’s passionate customers,” he continued.
