Who bought Mountain Equipment Co-op?
Kingswood Capital Management’s
Mountain Equipment Co-op (now called 1077 Holdings Co-Operative) is a Canadian co-op that started the MEC outdoor gear retail brand. The MEC brand name, assets and store leases were purchased by the American private investment firm Kingswood Capital Management’s subsidiary Mountain Equipment Company in October 2020.
Did MEC get bought out?
Los Angeles-based Kingswood Capital Management is buying the outdoor goods retailer through the Companies’ Creditors Arrangement Act.
Is MEC no longer a coop?
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. Unlike a conventional business, a co-operative is owned and managed by members, who set policies and make decisions.
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.
What is happening with Mountain Equipment Co-op?
Last September, deep in debt and with rising losses, Mountain Equipment Co-op filed for creditor protection and announced its sale to U.S.-based private investment firm Kingswood Capital Management.
Where is Mountain Equipment made?
We design products for our owned brands, and we have strategic manufacturing partners in China, Vietnam, Myanmar and Hungary.
Is Rei related to MEC?
MEC was originally the brainchild of six Vancouver mountaineers who started in the 1970s making small, cross-border runs to outdoor equipment retailer REI, whose co-operative structure MEC shares.
Where is Mountain Equipment from?
Business and Supply Chain The Group is an international business with its head office in Macclesfield, Cheshire, UK.
Is MEC owned by REI?
Why did MEC fail?
MEC’s slide arguably started in 2012, when it dropped the word “co-op” from its marketing and adopted a rule to disqualify board of director candidates that the board felt weren’t up to the job. Today, only one of the bios for MEC’s board makes an implicit reference to co-operative experience.
Why was MEC sold?
Another member said, “This sell out is a result of MECs board losing sight of the co-operative values, pivoting to a typical retailer and urban outfitter. Things started going downhill when they switched to MEC brand from Mountain Equipment Co-op.
How much was MEC sold?
Kingswood reportedly paid just around $150 million for the troubled co-op. At a value of $10 per member record, for 5.1 million members, Kingswood just has to sell this database a mere three times to recoup its investment.
