Mountain Equipment Co-op Insolvent, To Be Acquired
The 22-door outdoor retailer filed for protection under Canada’s Companies’ Creditors Arrangement Act, the equivalent of bankruptcy there, and announced that Los Angeles-based PE firm Kingswood Capital Management had agreed to buy its assets for an unspecified price. Under the arrangement MEC will continue to operate, though it is possible that some of its stores may be shuttered. MEC had been struggling for a while, reporting an operating loss of C$22.7 million last year and a loss of C$15.9 million the year before. But it was the coronavirus pandemic that sealed its fate, forcing it to close all stores in ... Log in to view full article.