(Vancouver) Mountain Equipment Co-op (MEC) in distressed outdoor recreation opposes a proposal to delay the sale to a private US investment company and says there is "great urgency" to complete transaction.
Posted on September 29, 2020 at 12:17 PM
Kevin Harding of the Save MEC campaign filed last week with a court in British Columbia to delay the sale to Kingswood Capital Management, a California-based company, as part of an effort to mobilize funds to fund the to maintain the retailer's cooperative status.
In a response filed Monday, MEC questioned the group's ability to solve the retailer's liquidity problems, noting that none of the potential funding sources offered "have concrete commitments or realistic options". concerned.
According to the company, given the number of issues to be resolved before closing the sale, including negotiations with the owners, the proposed delay would jeopardize the transaction.
MEC says the sale must be urgently ended before the retailer suffers "significant weekly cash losses" that could worsen with a second wave of COVID-19 cases.
The company also says it needs a quick shutdown so Kingswood can enjoy the next Christmas shopping.