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“After careful consideration of all viable options, the board made this difficult decision,” said MEC’s board chair Judi Richardson. “Despite significant progress on a thoughtful turnaround strategy undertaken by new leadership, no strategy could have anticipated or overcome the impact of the global pandemic on our business.”
Kingswood has committed to acquire the majority of retail stores, and under the court protection of CCAA, MEC will continue to operate until the transition is completed. The deal is expected to close in the fourth quarter of 2020. Financial details were not disclosed.
MEC member and Canadian, Eric Claus, will lead Kingswood’s newly formed Canadian affiliate as board chair and CEO.
“MEC is an iconic brand founded on strong values and has a loyal following,” said Kingswood’s Managing Partner, Alex Wolf. “We have tremendous respect for those values and the loyal membership and are honoured to be partnering with Canadian operating partners who will represent us on the ground in Canada working with MEC’s management team following the closing to ensure a bright future for MEC.”