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Decision on MEC sale expected this morning

Last Updated Oct 2, 2020 at 8:03 am PST

MEC's head office on Great Northern Way in Vancouver. (Hana Mae Nassar, NEWS 1130 Photo)
Summary

A court decision is expected on the potential sale of Mountain Equipment Co-op Friday

Members opposing the sale of MEC argue the board of directors didn't meaningfully consult them

MEC says it's urgent for the sale to go through amid mounting losses

VANCOUVER (NEWS 1130) – Members of Mountain Equipment Co-op fighting its sale to a U.S. private equity firm are set to find out if the deal can be postponed this morning.

The court is scheduled to release its decision at 9:30 a.m. after the Save MEC Campaign filed an application last week.

The group says it wants the delay so members can “explore alternative options to address MEC’s liquidity issues,” including selling real estate and potential operating loans.

Read more: Thousands rally to ‘Save MEC’ as board moves to sell co-op to U.S. company

The company argues it’s urgent for the sale to close as soon as possible, before losses mount and so that the potential buyer, Kingswood Capital, can take advantage of the holiday sales period.

Last month, members of Save MEC launched a petition just one day after the deal to sell MEC’s assets was announced.

Those who oppose the sale say the board of directors didn’t meaningfully consult with members, who are also voting shareholders.

Hundreds of thousands of people have already signed two petitions to “Save MEC” and “Stop the privatization of Mountain Equipment Co-op.”