Tim Gu, principal owner of Smart Investment Ltd. and president of E. Star International Inc., is acquiring a majority stake in Mountain Equipment Co-op (MEC). This follows a period where MEC was seeking investment to revitalize the business after filing for creditor protection during the pandemic and a subsequent acquisition by Kingswood Capital Management. The deal is under review by the Canadian Competition Bureau.
Mr. Gu's extensive background in the Canadian textile industry, with experience in manufacturing, sourcing, and product development, makes him a suitable candidate for leading MEC. His involvement in companies like E. Star International, Unisync Group Ltd. (where he's Chairman of the Board), and Tilley (a previous investment) emphasizes this expertise.
While details are limited due to ongoing regulatory approvals, MEC's CEO, Peter Hlynsky, and Kingswood Capital will retain minority stakes. Mr. Gu expressed commitment to MEC's long-term success.
The acquisition signals a potential change of direction for MEC. The textile executive's involvement could indicate a renewed focus on product manufacturing and supply chain management, crucial aspects of the retail outdoor industry. The future of the brand will likely depend on the success of this business model change under new leadership.