Advertisement

MEC to lay off fewer employees than planned with one store to close, say new owners

The outside of a Mountain Equipment Co-Op is seen in North Vancouver, Monday, Dec. 9, 2017.
The outside of a Mountain Equipment Co-Op is seen in North Vancouver, Monday, Dec. 9, 2017. The Canadian Press/Jonathan Hayward

VANCOUVER – Mountain Equipment Co-op says it will be letting go of fewer employees than previously planned with just one store set to close following its takeover by a U.S. private investment firm.

The Vancouver-based company says that 85 per cent of its active workforce will remain on the job once the deal closes, up from a minimum of 75 per cent that Kingswood Capital Management Ltd previously indicated.

Click to play video 'Petition launched to halt MEC sale' Petition launched to halt MEC sale
Petition launched to halt MEC sale

MEC had 1,516 employees as of Sept. 7, including 1,143 who were active mostly in B.C. and Ontario, according to a monitor’s report when it was under creditor protection.

Story continues below advertisement

Read more: Tens of thousands sign petition to ‘save MEC’ after co-op sold to U.S. firm

The report also said it had 197 workers on leave and 176 on layoff.

Click to play video 'Loyal fans unhappy over MEC’s sale to U.S. firm' Loyal fans unhappy over MEC’s sale to U.S. firm
Loyal fans unhappy over MEC’s sale to U.S. firm

Kingswood plans to keep 21 of its 22 stores open, up from its original plan for a minimum of 17 stores.

After struggling with sluggish sales, inventory issues and increasing online competition, MEC filed for creditor protection on Sept. 14 and announced its sale to a Canadian subsidiary of Los Angeles-based Kingswood.