The MEC brand name, assets and store leases were purchased by the American private investment firm Kingswood Capital Management's subsidiary Mountain Equipment Company in October 2020.

Following its founding in Vancouver, British Columbia in 1971, MEC expanded across Canada and grew to operate stores in 20 cities.

Once catering to mountaineers and climbers, MEC targeted a broader, more urban clientele, having added more clothing as well as cycling and yoga supplies.

[3] Facing mounting financial losses in 2019 and during the COVID-19 pandemic in Canada, in September 2020, without consulting its membership, the board of directors of the co-operative entered into an agreement to sell its assets to Kingswood.

Following the completion of the deal in late October, Kingswood began operating the retail assets as a for-profit business.

A significant proportion of the company's inventory was manufactured in Asia, with names and addresses of partner-factories made publicly available on the co-op's website.

"[10] Each year, every member of MEC has the opportunity to vote in the elections for its board of directors, as well as on "special resolutions", through a variety of methods.

It does, however, create space for creative solutions and capital remains local benefiting the communities in which MEC operates.

"[10] While the democratic structure gave one vote to one member, the financial structure and "policies and legislation pertaining to business in Canada, such as how capital is classified, the classification of dividends versus patronage payments, and tax incentives for investing in co-operatives" were, as noted by Strashok, ill-studied by Canadian business schools.

In 2008, the commonweal of the Co-op was measured by Ponto according to Anielski's Genuine Wealth model,[19] while in 2011 Strashok produced a case study that focused on its promotion of sustainable development.

[20][21] MEC had undertaken initiatives in the field of social and environmental responsibility, including: The organization had engaged in several business initiatives: In 1971, four members of the University of British Columbia Varsity Outdoor Club conceived the idea of a mountain climbing equipment co-op when a snowstorm stranded them on Mount Baker in Washington state.

[42][43] The organization was incorporated under the British Columbia Co-operative Associations Act, with a constitution that was originally written by co-founder Jim Byers.

Hudson's Bay Company executive Bill Gibson was hired from outside the organization and within a few years he had opened stores in Ottawa and Edmonton.

Road running, bicycles and yoga apparel were introduced and became significant components of MEC's marketing focus.

[47] In November 2009 MEC began selling MEC-branded bikes in seven stores: Vancouver, Calgary, Winnipeg, Burlington, Toronto, Montreal and Longueuil.

[51] In November 2010, as the MEC petitioned North Vancouver for permission to re-zone a property for expansion of its retail operation there, Jayson Faulkner, a competitor who owned Escape Route, took issue with the income tax rules under which the MEC was able to "amass hundreds of millions of dollars in patronage dividends that were never taxed or paid out to members, thus creating a huge pool of cash to fund its dramatic expansion."

They are an aggressive, predatory competitor who will do whatever it takes to ensure they continue to grow and eat up market share, which is already 70-80% in some product categories...

MEC CEO David Labistour said that pre-selection of board candidates "offers [the] membership an informed election" that is both transparent and "in line with the health of the organization."

Its product lineup was broadened to include "more mainstream items such as road running shoes and downhill skis", and it aimed to better serve a "younger, more multicultural and female" clientele.

[3] A change in mission occurred while Bill Gibson was MEC's board chair, as the co-op incorporated urban pursuits like road running, cycling and yoga into the product line.

MEC had formerly focused on "self-propelled outdoor wilderness activities" and these new product lines made it a competitor in the urban sports retail market under CEO Labistour.

Arrata had been an MEC board member between 2015 and 2018, and was also an adjunct professor at the University of British Columbia's Sauder School of Business.

[41] On September 14, 2020, it was announced that MEC's assets, including the majority of its retail stores, would be acquired by private equity firm Kingswood Capital Management, LP in a deal under the federal Companies' Creditors Arrangement Act.

The board had also not consulted members on a possible rights issue deal, to make an internal offer to refloat the co-op.

In explaining why there was no communication with members on the sale she indicated that the board had prioritized "preserving jobs and saving MEC from bankruptcy or liquidation.

[67] MEC founding board member Sara Golling said in a September 18, 2020 interview that she felt "grief and betrayal" at the sale of the co-op's assets to a private US investment firm.

The Wallis affidavit listed at great length the alternatives sought by the special committee, and stated that full and fair disclosure to shareholders as part of a rights issue "could have had a negative impact on MEC's business, including its relationships with suppliers and landlords and its search for new financing or for a buyer.

"[70][71] The conduct of the special committee was influenced by the participation of a Financial Advisor (FTI Consulting) who were retained by the Royal Bank of Canada, who were lead banker in the lenders' consortium.

The financial advisor to the liquidation process "contacted 158 parties; nine of them ultimately signed a letter of intent contemplating an acquisition of most or all of the assets."

[18] On September 28, the current management responded in a court filing, which said they doubted the ability of Save MEC to address the significant "cash flow issues, noting that the proposed sources of potential funding don't involve concrete commitments or realistic options" and remarked that they feared "the proposed adjournment would put the deal (with Kingswood) in jeopardy.