Mountain Equipment Co-op says its board of directors has unanimously approved a deal in which a Los Angeles-based private investment firm will acquire MECB次元官网网址檚 assets, including the majority of its retail stores.

Vancouver-based MEC says the transition from a co-operative structure to a subsidiary of Kingswood Capital Management is needed to ensure a stable future for the business.

The retailer says it has been granted court protection under the CompaniesB次元官网网址� Creditors Arrangement Act (CCAA), allowing it to continue operating e-commerce and retail stores while the transaction and other elements of the plan are completed.

Kingswood managing partner Alex Wolf says in a statement he is B次元官网网址渉onouredB次元官网网址� to work with his new Canadian operating partners, adding his company is committed to continue to B次元官网网址渋nspire and equipB次元官网网址� Canadians who enjoy an active outdoor lifestyle.

Long-standing MEC member and Canadian Eric Claus will lead KingswoodB次元官网网址檚 newly formed Canadian affiliate as chair and CEO.

MEC chair Judi Richardson says the B次元官网网址渄ifficult decisionB次元官网网址� to sell MEC follows an extensive examination of options after the company was unable to overcome years of persistent financial challenges made worse by the impact of the COVID-19 pandemic.

B次元官网网址淭odayB次元官网网址檚 announcement, including the transition from a co-operative structure, is creating a positive path forward for MEC,B次元官网网址� she said.

B次元官网网址淜ingswoodB次元官网网址檚 commitment to honouring the MEC ethos and the solid financial footing that this transaction will provide gives us tremendous confidence in the future.B次元官网网址�

No financial details were provided.

Alvarez & Marsal Canada Inc. has been appointed by the court as the monitor under the CCAA proceedings.

The transaction remains subject to regulatory approvals and is expected to close in the fourth quarter of 2020.

The Canadian Press