Update 2/17/2025: Canadian newspaper the Globe and Mail reported on Jan. 31 that due to bloated inventories, declining revenues and profits, MEC “requires an infusion of capital to normalize its operations.”
Update 1/17/2025: The Globe and Mail reported on Jan. 15 that MEC told vendors in a meeting that it had identified a lead bidder for the company, and that it would be a Canadian owner.
Mountain Equipment Company (MEC) is in the process of being sold again, but the deal has not been finalized or officially announced.
The Canadian retailer notified suppliers of the sale in an email on Dec. 27, according to CityNews in Ottawa.
A supplier who asked to remain anonymous confirmed to Shop Eat Surf Outdoor that they had been notified of the sale in a meeting.
A MEC spokesperson said they were aware of rumors circulating on LinkedIn, but that the company did not have news to share.
Retail data and intelligence company RetailStat shared on LinkedIn that it was aware of an impending sale.
“Despite some improvement in payment trends earlier this fall, MEC’s payment performance declined in December, with less than 55% of payments within terms,” said the LinkedIn post. “This suggests waning trade support, which could negatively impact inventory levels during the critical holiday season, ultimately affecting sales, borrowing base, and liquidity.”
A report by the Sports Industry Credit Association that was shared with Shop Eat Surf Outdoor by a supplier shows MEC owed suppliers more than $94,000 over a five-day period in November.
“For the whole year it’s much more,” they claimed.
MEC opened its 23rd standalone store in Whitby, Ontario, in May 2024, according to a press release.
Los Angeles-based private investment firm Kingswood Capital acquired MEC in 2020 after it filed for creditor protection and transitioned from being a co-op to a company. CEO Peter Hlynsky took the helm of the company in 2023. He told Shop Eat Surf Outdoor that despite the business model shift, he had no plans to make any drastic changes and would not expand its retail footprint outside of Canada in November 2023.
“The beautiful thing about a business that’s 52 years old – you don’t need to radically transform it,” Hlynsky said.
Industry veteran and former REI executive Chris Speyer joined MEC in July 2024.
