Alberta Land Rover Enthusiasts Club Forum
General => Non Technical Discussion => Topic started by: ugly_90 on September 15, 2020, 12:34 PM
I knew they had been struggling over the last few years, it seems MEC has been sold off to another company today. Some of their house-brand equipment, clothing and bags are good quality and go on sale very cheaply at end of season. Their name brand supplies could be bought elsewhere I suppose. You might get some trail clothes before they end lines. I would expect the US group that bought them to be in the business of improving profits, which were a problem earlier.
REI is simmilar in the US, but I've never shopped there.
God know how they were losing money. The stores are always packed. And they are building three new stores in Calgary. Must be serious mismanagement.
That is a real surprise to hear!
But they have stores with huge footprints now...lots of real estate to manage. It wasn't that long ago I used to look forward to getting their catalogue and the very infrequent trip to their store in Calgary. It wasn't so much fashion then.....but great gear!!!!!
I wonder if they are going to be doing the membership thing anymore.....or are they dropping the 'C'...?
The "C" will no longer apply. And, members who want their $5 back (which everyone should given they are selling out) need to be declared creditors - "During the transition from a co-operative to a private company, members would have to claim themselves as creditors to stake a claim on their $5 shares." [Source: https://www.cbc.ca/news/business/mec-acquired-private-investment-firm-1.5723934 (https://www.cbc.ca/news/business/mec-acquired-private-investment-firm-1.5723934)]
I doubt the company will continue. They will just sell off the assets. Turning it into just another outdoor equipment store would kill it quickly.
I don't know a lot about the deal, other than it was a venture capital group the bought the company. My limited read of things would suggest that John is on the right track here...this one appears to have been bought to dump the assets and be done with it.
What a shame...... >:(
It seems that the details are revealing this to be very suspect. The group they are selling to is a tiny company with very few assets and a short history. They certainly do not seem to be the right or only choice. The sale price has not been revealed, but it seems unlikely they have the capital to come anywhere near covering the current debt and certainly not cover the asset value.
The current board has not released financial statements since 2018 and the details of the board elections have not been released.
... so, if you liked something only they had, its probably the time to get it in now. I have noticed their decline started somewhere after they went to their new logo long ago. The old "Mountain Equipment Co-Op " bags seem a bit better than their later "MEC" ones.
I can't see prices going down and quality going up with this new buyer either. Bass Pro Shops and Cabela's aren't much better now that they've amalgamated, a few less competing items on either of their shelves there too.
They lost me when they stopped carrying boots and clothes in my size years ago. I feel they went off the rails when they started catering to the fashion and trendy shoppers.
Quote from: headdamage on September 21, 2020, 06:43 PM
They lost me when they stopped carrying boots and clothes in my size years ago. I feel they went off the rails when they started catering to the fashion and trendy shoppers.
Ditto, haven't been in one of their stores for ages, for the same reasons.
Used to be one of my favourite stores, stopped shopping there when they dropped Vista Outdoor gear and got political (while keeping their sweatshop made clothes). Good riddance.
The BC courts ruled today to allow the asset sale and bankruptcy to proceed. And with that $190 million in shares evaporates with no input allowed from the shareholders.