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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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Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop

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TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.

The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.

“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.

The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.

But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.

Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.

“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.

“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”

Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.

The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.

In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.

Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.

The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.

The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.

Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.

Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.

It will also re-evaluate its design ranks.

Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.

Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:ROOT)

The Canadian Press. All rights reserved.

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Talks on today over HandyDART strike affecting vulnerable people in Metro Vancouver

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.

No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.

About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.

Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.

Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.

A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

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MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.

The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.

The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:TRZ)

The Canadian Press. All rights reserved.

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