A prospective buyer has emerged for Mountain Equipment Company’s struggling retail operations, as revealed in a merger review launched earlier this month by the federal Competition Bureau.

The review concerns a potential deal between TGI Holding Inc. and MEC Mountain Equipment Company Ltd., according to the Bureau’s website. While few details are available, the watchdog’s ongoing review suggests a transaction is under consideration after months of MEC seeking fresh investment.

The Competition Bureau assesses mergers and acquisitions to ensure they do not reduce competition in the Canadian market. It remains unclear who is behind TGI Holding or how a deal might impact MEC’s national store network.

MEC spokeswoman Jo Salamon declined to comment to The Globe and Mail.

The outdoor gear retailer filed for court protection from creditors during the COVID-19 pandemic and was acquired in 2020 by California-based investment firm Kingswood Capital Management in a $150-million deal. The sale ended MEC’s nearly 50-year run as a member-owned co-operative.

In January, the Globe reported that MEC was once again up for sale and had fallen behind on vendor payments.

MEC currently operates 23 standalone locations across Canada, in addition to three shop-in-shop outlets inside Hudson’s Bay stores. Two of those are located in Bay locations that are not part of the retailer’s ongoing liquidation, according to the Globe.

A new MEC store is also slated to open in Nanaimo, B.C., later this year. Meanwhile, a Vancouver location is slated to become a mixed-use redevelopment.

Photo: MEC

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