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Members fighting sale of MEC say planned COO hire clashes with Canadian company's values – CBC.ca

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Members of Mountain Equipment Co-op (MEC) fighting its takeover by an American investment firm say the hiring of an executive from a U.S. company that makes footwear for the military and police clashes with the company’s values.

Jay Taylor, who is currently listed as the CEO of LALO Tactical on its web page, is in line to be MEC’s president and chief operating officer if the sale goes through to Kingswood Capital Management, the Los Angeles-based firm confirmed to CBC News in an email.

So far, 2,400 MEC supporters have raised more than $100,000 for a legal fund to fight the takeover, but the deal could be approved as soon as Monday at a court hearing in Vancouver.

Word of the potential hire was buzzing on social media over the weekend, infuriating members of Save MEC, a group trying to stop the sale of the Vancouver-based retailer and organize a counter-offer.

“It’s shocking to me,” said Jackie Pierre, an MEC customer from Vancouver for 10 years and a Save MEC member. “This is so far from what [MEC] is known for originally.”

Jackie Pierre of Vancouver is an MEC customer and member of the group Save MEC. She’s shocked by the idea of an executive from a company with ties to the military and police coming to MEC. (Submitted by Jackie Pierre)

MEC’s values include democratic collaboration, social and environmental accountability, stewardship and more recently, diversity and inclusion. Those who want to stop the sale of MEC — the largest co-operative in Canada — are concerned that bringing in a leader with military roots is a bad match for the brand and could endanger the company’s culture.

LALO Tactical, based in San Diego, was set up in 2009 “to serve the needs of Special Operations Forces.” It makes specialized boots with names like “Intruder,” sold in colours like Black Ops and Ranger Green.

Though it also makes athletic shoes, LALO’s Instagram marketing leans heavily toward the military and police.

In an open letter last week, Kingswood assured MEC customers that the brand’s values would be protected.

But Pierre and other Save MEC members, including Kevin Harding, say the potential hiring of Taylor sends a different message.

“If this is how Kingswood plans to honour MEC’s values, I’m deeply disappointed,” Harding, of Vancouver, said.

An old social media post by Taylor is also being cited as proof of the mismatch.

Save MEC members aren’t the only ones concerned that the company’s values are in jeopardy. An advertising expert is warning Kingswood that it could be doing damage to the iconic company it wants to buy.

A culture clash seen through the lens of social media

Kingswood confirmed to CBC on Saturday that Taylor attended meetings in Vancouver last week as part of “introductory discussions” with “key suppliers and incoming MEC leadership.”

Taylor’s history with LALO is alarming to some MEC members.

Jay Taylor has been with LALO Tactical since 2013. The company’s social media postings strongly feature the military and police, displaying not only its shoes but guns. (LALO Tactical/YouTube)

The company, which counts a former U.S. soldier among its founders, says LALO is an acronym for “Light Assault Lo-Vis Operator, a nimble, quick, tactical Special Forces Operator.”

Many company Instagram posts show its boots being worn by heavily armed men in combat-like settings, or by men in police uniforms with guns drawn.

Captions in some posts include: “I have a very strict gun control policy; if there’s a gun around, I want to be in control of it,” and “Locked, cocked, and ready to rock.”

Another featuring police officers says “Blessed are the peacemakers for they shall be called the children of God.”

Reactions on Save MEC’s Facebook page were strong.

One member described LALO’s instagram feed as “particularly jarring for those familiar with MEC’s ethos.”

Another, who claimed to be part of the hunting and gun community, called Taylor a name and said the executive and LALO were “totally the wrong fit.”  

This posting (blurred by CBC) came from a group member concerned about the recruitment of Jay Taylor to MEC’s management team. It was featured on the Save MEC Facebook page over the weekend. (Save MEC/Facebook)

There’s also a strong reaction to a post coming from Taylor’s own little-used Instagram account in 2016.

In it, Taylor responds to the killing of a group of police officers known as the “Dallas 5.” The shooter was an army veteran who said he wanted to kill white officers to demonstrate his anger over police shootings of Black men.

Taylor’s message suggests people should buy a T-shirt to support the families of the officers who died.

The post includes the hashtags #livesmatter, #policelivesmatter and #bluelivesmatter.

This post was made on Jay Taylor’s Instagram account in July 2016. Members of the Save MEC group say it shows his values do not align with the MEC brand and culture. (Jay Taylor/Instagram)

While it mentions a more inclusive hashtag, #oneteamonefight, it does not mention #blacklivesmatter.

At the time, the Black Lives Matter movement was already three years old, and police shootings of Black people were a growing part of public discourse.

For Jackie Pierre, it’s an upsetting picture.

“You know, this guy to me resonates guns, All Lives Matter, Blue Lives Matter,” she said. “Whoever’s making these decisions is obviously not in solidarity with people of colour.”

MEC supporters pressuring creditors

Pierre said if the Kingswood offer goes through and Taylor is hired, not only will she stop shopping at MEC, but she’ll quit banking with RBC, which is one of MEC’s leading creditors.

MEC lost $11 million in its last fiscal year of operation. COVID-19 has further weakened the company this year, and its management agreed to the sale.

The Save MEC movement is pressuring the company’s creditors, especially RBC, to extend loans to MEC long enough for the group to present a counter-offer.

WATCH | Why MEC might perish, regardless of sale to U.S. investment firm:

Members of Canada’s largest consumer co-operative say the deal goes against its businesses principles. 5:26

The group’s hope is that drawing attention to the legacy values of the brand and the direction the company would be taken under new owners will encourage RBC to include public perception as part of its evaluation.

Almost 50 years old, MEC has 5.4 million members and 22 stores in Canada. More than 135,000 people have signed an online petition to stop its privatization.

An accomplished executive

In response to the concerns of Pierre and other Save MEC members, Kingswood said in an email to CBC that it has a “deep appreciation for what MEC stands for” and will operate within MEC values.

It also said that Taylor is a “longtime Vancouver resident and MEC member” and an “accomplished executive in the outdoor industry.”

In addition to expertise in “product innovation, development and manufacturing, as well as sales and marketing,” the statement noted his past experience as an owner of ski shops in British Columbia.

Taylor’s LinkedIn profile also describes his leadership role at the running shoe company Hoka One One over nearly three years.

It says he was responsible for launching Hoka in North America and the Asia Pacific region before negotiating the sale of the brand to another company.

Taylor did not respond to a request from CBC for comment or an interview.

Risking the brand

Toronto-based advertising executive Denise Cole has worked with iconic Canadian companies like Roots and Lululemon, as well as the international mega brand Coca-Cola.

Co-founder of the ad agency Juliet Creative, she said she believes Kingswood should be worried about the reaction to its bid for MEC.

“A brand is certainly only as valuable as people’s belief in it, in what it stands for,” Cole said.

Denise Cole of the Toronto ad agency Juliet Creative says MEC is built on a ‘foundation of community,’ and upsetting that community could do major damage to its value. (Submitted by Denise Cole)

MEC is built on a “foundation of community,” she said, and upsetting that community could do major damage to sales and what the company is worth in the future.

Cole said she thinks MEC’s most loyal customers would accept an American owner so long as they felt the owner was listening to them.

“And I think that the outcry that we’re seeing from the most active consumers and the most active members of their base, it does put them in jeopardy.”

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Canada Goose to get into eyewear through deal with Marchon

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TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.

The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.

The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.

Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.

Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.

Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GOOS)

The Canadian Press. All rights reserved.

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A timeline of events in the bread price-fixing scandal

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Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.

Here’s a timeline of key events in the bread price-fixing case.

Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.

Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.

Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.

Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).

Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.

June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.

Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”

Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.

July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.

Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)

The Canadian Press. All rights reserved.

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TD CEO to retire next year, takes responsibility for money laundering failures

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TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.

Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.

The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.

As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.

TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.

TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:TD)

The Canadian Press. All rights reserved.

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