Retailers continue to struggle to offload extra inventory, but the outdoor industry has been especially hard hit.
Driving the news: Mountain Equipment Company (MEC), the country’s premier destination for outdoor wear and gear, has been put up for sale by Kingswood Capital Management, an L.A.-based investment firm, just four years after scooping it up for a reported US$150 million.
- The Kingswood deal ended the days of MEC being a member-owned co-operative (known as Mountain Equipment Co-Op) as it became a privately owned company.
Big picture: Despite efforts to restructure the business by shaking up leadership, focusing on MEC-owned product lines, and renegotiating store leases, the company has struggled, like many retailers, with sluggish sales and a glut of inventory post-pandemic.
- David Ian Gray, a strategist who has worked with MEC in the past, told BCBusiness MEC had lost focus on the hardcore outdoor enthusiasts that made the brand cool.
Why it matters: MEC was once an iconic co-operative with over 5 million members, built on shared ownership, democratic decision-making, and a focus on community over profit. These values have proven to be difficult to hold up in a competitive retail landscape.—LA