Mountain Equipment Company (MEC) has found a new buyer. The Globe and Mail is reporting that MEC has agreed to sell a majority stake to Ontario textile manufacturing executive and real estate investor Tim Gu.
The purchase will bring MEC back under Canadian ownership. The company, which is currently owned by Los Angeles-based private investment firm Kingswood Capital experienced steady revenue losses over the past two years and debts totalling more than $89 million.
“We can confirm it’s a Canadian buying group,” MEC spokesperson Jo Salamon told the Globe and Mail.
The deal will dissolve the member-owned co-operative structure the company has operated under since 1971.
