Photo: Chung Chow, BIV.

MEC CEO Peter Hylnsky is one of the Canadian investors who have teamed up to buy the iconic venture

A group of Canadian investors led by textile executive Tim Gu is acquiring Vancouver's Mountain Equipment Co. (MEC) in a deal MEC announced this afternoon. 

MEC CEO Peter Hlynsky and chief merchandising officer Chris Speyer are also part of this group, according to an MEC press release. 

Gu is chairman at Unisync Corp. (TSX: UNI), a Canadian uniform-clothing company, as well as an investor in venerable Canadian brands, such as Tilley and Roots.

BIV first reported in January that MEC was rumoured to be up for sale for the second time in five years and was struggling to get sufficient cashflow to pay suppliers.

BIV then reported on many suppliers suing MEC over alleged unpaid bills. 

MEC said today that partnering with Gu strengthens its ability to reinvest in domestic manufacturing. Much MEC manufacturing has historically taken place in Canada.

“As a lifelong believer in Canadian manufacturing and innovation, I’m proud to join MEC’s journey," Gu said. "Together, we’ll strengthen its foundation, expand its reach, and ensure that MEC remains an essential part of Canada’s outdoor culture for generations to come.”

The move toward investing more heavily in domestic manufacturing is to "enhance the authenticity, quality, and innovation of the MEC Label product line," according to the company. 

Other investors also hinted that the upsurge in Canadian nationalism in the face of U.S. President Donald Trump's tariff threats and actions may have helped propel the deal. 

“There has never been a better time to celebrate being Canadian” said Hlynsky.

“Today marks the beginning of MEC’s next chapter, grounded in the values that built MEC from the start. We will continue to evolve and innovate in order to stay relevant to the next generation of outdoor enthusiasts, and we will remain true to what sets MEC apart: expert staff who live and breathe the outdoors, stores that are anchors for outdoor communities and an unwavering commitment to providing the best assortment of outdoor gear found anywhere. MEC being back in Canadian hands means we are more committed than ever to equip Canadians for all trails ahead.”

The 1971-founded venture in October 2020 got court approval to be sold to Kingswood Capital Management after entering creditor protection. That company is a Los Angeles-based investment firm that has separate owners and no connection to Kingswood Capital Corp. or Kingswood Properties, which are holdings of Vancouver's Segal family.

Alex Wolf, managing partner at Kingswood said he was pleased with investments made in the business since takingit over, and what he called "resulting growth in MEC’s brand offerings and private label [products.]"

He added that turning the venture over to the new ownership group made sense because it positions MEC to better grow its presence across Canada. 

The sale has been in the works for months, MEC said.