For Peter Hlynsky and Chris Speyer, the future of Mountain Equipment Company had to be more than just financial recovery. As the iconic Canadian outdoor retailer searched for a new owner, it also sought a partner who understood the brand’s deeper connection to Canadian values, especially in manufacturing.
That search has ended with Tim Gu. The textile executive, known for his deep ties to Canadian production and ownership stakes in Roots and Tilley, has reached a deal to acquire MEC. Gu will become the majority owner, with Hlynsky and Speyer remaining as part of the investment group. The deal confirms earlier reporting by The Globe and Mail, though financial terms were not disclosed.
Also read: Wall Street Week Ahead: Retailers set to give tariff view as US stock market roars back
Made in Canada again: MEC’s domestic manufacturing revival
With Gu at the helm, MEC plans to bring portions of its manufacturing back to Canada, a significant shift in a retail sector long dependent on offshore production. Hlynsky says domestically made MEC-brand clothing will start appearing in stores as early as this summer. For a company whose private label drives much of its sales, including snowsuits, activewear and technical gear. The move taps into growing consumer appetite for Canadian-made products.
“There is a desire to have product that is made in Canada,” said Hlynsky. “He understands the manufacturing side of things probably better than a lot of people we talked with.”
Gu’s company, E.Star International Inc., runs textile factories both in Canada and abroad and manufactures for major retailers like Walmart, Canadian Tire and Canada Goose. He is also chairman of Unisync Group, a Mississauga-based firm supplying uniforms and apparel to the public and private sectors.
Shift in strategy amid growing supply chain pressures
MEC’s shift to local production aligns with a broader trend in Canadian retail, as brands reevaluate their supply chains in response to global tariffs and political tensions, especially with the United States. While few MEC products are US-sourced, the shifting climate has created a new opening for brands with a domestic identity.
Also read: 5 world market themes for the week ahead
Gu sees that opportunity clearly.
“As a lifelong believer in Canadian manufacturing and innovation, I’m proud to join MEC’s journey,” Gu said in a press release. “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.”
MEC’s earlier acquisition in 2020 by Kingswood Capital Management came after the retailer filed for creditor protection during the pandemic. Kingswood, a California-based firm, will remain a minority investor in the new ownership structure.
Retail comeback: sales rebound and expansion plans
Though sales had dipped since 2023, Hlynsky said the business began rebounding last year and has continued its upward momentum through 2025. He credits renewed interest in domestic travel and outdoor recreation, as Canadians turn inward amid ongoing cross-border friction.
MEC, which operates 26 stores across Canada, will continue to grow, but in a controlled way. “We are looking at new store openings at a moderate pace,” Hlynsky said.
Kingswood, for its part, sees the transition as timely. “Turning it over to Tim and his team makes sense at this juncture and positions MEC to grow its presence across Canada,” said managing partner Alex Wolf in a statement.
Also read: US retail sales little changed, signs of pullback after pre-tariff rush
Once a co-operative that served outdoor enthusiasts for nearly five decades, MEC’s new chapter reflects a blend of its heritage and a sharper, more locally focused retail strategy.
That search has ended with Tim Gu. The textile executive, known for his deep ties to Canadian production and ownership stakes in Roots and Tilley, has reached a deal to acquire MEC. Gu will become the majority owner, with Hlynsky and Speyer remaining as part of the investment group. The deal confirms earlier reporting by The Globe and Mail, though financial terms were not disclosed.
Also read: Wall Street Week Ahead: Retailers set to give tariff view as US stock market roars back
Made in Canada again: MEC’s domestic manufacturing revival
With Gu at the helm, MEC plans to bring portions of its manufacturing back to Canada, a significant shift in a retail sector long dependent on offshore production. Hlynsky says domestically made MEC-brand clothing will start appearing in stores as early as this summer. For a company whose private label drives much of its sales, including snowsuits, activewear and technical gear. The move taps into growing consumer appetite for Canadian-made products.
“There is a desire to have product that is made in Canada,” said Hlynsky. “He understands the manufacturing side of things probably better than a lot of people we talked with.”
Gu’s company, E.Star International Inc., runs textile factories both in Canada and abroad and manufactures for major retailers like Walmart, Canadian Tire and Canada Goose. He is also chairman of Unisync Group, a Mississauga-based firm supplying uniforms and apparel to the public and private sectors.
Shift in strategy amid growing supply chain pressures
MEC’s shift to local production aligns with a broader trend in Canadian retail, as brands reevaluate their supply chains in response to global tariffs and political tensions, especially with the United States. While few MEC products are US-sourced, the shifting climate has created a new opening for brands with a domestic identity.
Also read: 5 world market themes for the week ahead
Gu sees that opportunity clearly.
“As a lifelong believer in Canadian manufacturing and innovation, I’m proud to join MEC’s journey,” Gu said in a press release. “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.”
MEC’s earlier acquisition in 2020 by Kingswood Capital Management came after the retailer filed for creditor protection during the pandemic. Kingswood, a California-based firm, will remain a minority investor in the new ownership structure.
Retail comeback: sales rebound and expansion plans
Though sales had dipped since 2023, Hlynsky said the business began rebounding last year and has continued its upward momentum through 2025. He credits renewed interest in domestic travel and outdoor recreation, as Canadians turn inward amid ongoing cross-border friction.
MEC, which operates 26 stores across Canada, will continue to grow, but in a controlled way. “We are looking at new store openings at a moderate pace,” Hlynsky said.
Kingswood, for its part, sees the transition as timely. “Turning it over to Tim and his team makes sense at this juncture and positions MEC to grow its presence across Canada,” said managing partner Alex Wolf in a statement.
Also read: US retail sales little changed, signs of pullback after pre-tariff rush
Once a co-operative that served outdoor enthusiasts for nearly five decades, MEC’s new chapter reflects a blend of its heritage and a sharper, more locally focused retail strategy.
