Join our growing community to challenge mainstream media bias and fix the news
MEC, Canada’s best-known co-op, sold to US private equity firm

MEC, Canada’s best-known co-op, sold to US private equity firm

Canada’s Mountain Equipment Co-op, the outdoor retailer with over 5 million members, has been sold to an American private equity firm, Kingswood Capital Management. The move shocked and saddened members and former staff of the country’s largest cooperative. Established in Vancouver in 1971, MEC customers needed to buy a share in the co-op for C$5 – a figure that remained same for almost 5 decades.

Simone
Simone
Peter
Peter 0 months

They’ll go bankrupt within 4-5 years. PE drains cash to recapture the cost of acquisition plus a spread for a hefty profit. Then PE leaves the lifeless carcass of the entity to fold causing job losses. Why would MEC want this? Bc the purchase of MEC was leveraged w enough debt that it can be padded into the sale to allow for a hefty cash payment to former Owners. So in the end fat cat mgmt get rich at MEC, the PE gets rich from fees and ongoing equity/credit withdrawals against MEC and employees and communities are screwed. American Capitalism

S
S 0 months

I know nothing about MEC's inner workings, but as a customer I can say their selection and services were solid, but their prices were often through the roof. Was always better off buying the same products at one of their competitors in person, or online.

WooToo
WooToo 0 months

Sad news.

Top in Business