Arabnews24.ca:Tuesday 29 September 2020 11:02 AM: Beleaguered outdoor recreation retailer Mountain Equipment Co-op is opposing a proposed deferral of the company's sale to a U.S. private investment firm, saying there is "significant urgency'' to closing the deal.
Kevin Harding with the Save MEC campaign filed an application in a B.C. court last week to adjourn the sale to California-based Kingswood Capital Management, part of an effort to raise funds to preserve the retailer's status as a co-operative.
In a response filed Monday, the company doubted the group's ability to help address MEC's liquidity issues, noting that none of the proposed sources of potential funding involve "concrete commitments or realistic options.''
The company says, given the number of issues that need to be addressed before the sale closes, including negotiations with landlords, the proposed adjournment would put the sale at risk.
MEC says it's urgent for the sale to close before the retailer experiences "significant weekly cash flow losses,'' which may worsen with rising COVID-19 rates.
The company also says a quick close is needed for Kingswood to take advantage of the upcoming holiday sales period.
