Beleaguered outdoor recreation retailer Mountain Equipment Co-op is opposing a proposed delay of the companyB次元官网网址檚 sale to a U.S. private investment firm, saying there is B次元官网网址渟ignificant urgencyB次元官网网址� to closing the deal.

Kevin Harding with the Save MEC campaign filed an application in a B.C. court last week to adjourn the sale to California-based Kingswood Capital Management, part of an effort to preserve the retailerB次元官网网址檚 status as a co-operative.

The group said it wants to B次元官网网址渆xplore alternative options to address MECB次元官网网址檚 liquidity issues,B次元官网网址� including selling real estate, obtaining operating loans and bringing in a credit card rewards program.

In a response filed Monday, the company doubted the groupB次元官网网址檚 ability to address MECB次元官网网址檚 cash flow issues, noting that the proposed sources of potential funding donB次元官网网址檛 involve B次元官网网址渃oncrete commitments or realistic options.B次元官网网址�

The Vancouver-based company said given the number of factors that need to be addressed before the sale closes, including negotiations with landlords, the proposed adjournment would put the deal in jeopardy.

MEC said itB次元官网网址檚 urgent for the sale to close before the retailer experiences B次元官网网址渟ignificant weekly cash flow losses,B次元官网网址� which may worsen with rising COVID-19 rates.

B次元官网网址淭he transaction has to close in a timely manner before MECB次元官网网址檚 forecasted losses escalate and in order for the purchaser to take advantage of the upcoming holiday sales periods,B次元官网网址� MEC said in the court filing.

The company added that MECB次元官网网址檚 other stakeholders, including its employees, would be B次元官网网址渦nfairly prejudicedB次元官网网址� by the proposed adjournment, as there is a B次元官网网址渞eal riskB次元官网网址� that a delay could lead to the closure of MECB次元官网网址檚 operations.

The retailer, which specializes in outdoor equipment and clothing, has 1,143 active workers with the majority located in British Columbia, Ontario and Alberta, according to the first report of the monitor on Sept. 24.

The 49-year-old retailer traces its roots back to a group of west coast mountaineers, who came up with the idea of opening a Canadian outdoor recreation store on a climbing trip to Mount Baker, Wash.

The grassroots co-operative officially launched in 1971 with six members and about $65 of operating capital.

MEC now has roughly 5.8 million members, according to court documents. Members pay a one-time membership fee of $5, which entitles them to one share in the co-op and the right to shop at MEC.

On Sept. 14, after struggling with sluggish sales, inventory issues and increasing online competition, the company filed for creditor protection and announced its sale to a Canadian subsidiary of Los Angeles-based Kingswood.

While the move came as a surprise to members, the outdoor gear and equipment retail space has become increasingly crowded in recent years.

In June, Canadian outdoor retailer Sail Outdoors Inc. filed for bankruptcy protection in order to restructure amid the COVID-19 pandemic.

However, as a member-owned co-operative, the group Save MEC has argued the storeB次元官网网址檚 sale should require their approval.

A petition against the deal had garnered 140,000 signatures by Tuesday, and the group is continuing to work on an alternative to selling the retailer.

B次元官网网址淲eB次元官网网址檝e been in discussions with lenders and other parties, and we currently have expressions of interest surpassing $100 million in value,B次元官网网址� Elliot Hegel, a spokesman for Save MEC, said Tuesday.

B次元官网网址淲eB次元官网网址檙e asking for a fair chance to save our co-op.B次元官网网址�

He said the group isnB次元官网网址檛 surprised by MECB次元官网网址檚 opposition to the request for a two-week delay to proceedings.

B次元官网网址淭hroughout this whole process we have seen that MEC and the board have been unwilling to involve the member-owners in discussions about the future of our co-op,B次元官网网址� Hegel said. B次元官网网址淭he members were not even informed of MECB次元官网网址檚 financial troubles, let alone the sale of the co-opB次元官网网址檚 assets to Kingswood.B次元官网网址�

The Canadian Press

Like us on and follow us on .

Want to support local journalism? Make a donation