The search ends with Tim Gu. The textile executive, known for his deep ties to Canadian production and rooted stakes, reached an agreement to acquire MEC. GU will become the majority owner, and Hlynsky and Speyer remain part of the investment group. The transaction confirms previous reports Earth and Mailalthough financial terms are not disclosed.
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Made in Canada again: MEC’s domestic manufacturing revival
With GU at the helm, MEC plans to bring some of its manufacturing back to Canada, a major shift in retail’s long-term dependence on offshore production. Hlynsky said that this summer, Mec-Brand clothing made in China will begin to appear in stores. For a company that sells most of its sales with private labels, including snow suits, sportswear and technical equipment. This move can attract growing demand for Canadian-made products.
“People are eager to have products made in Canada,” Hlynsky said. “He understands that the manufacturing side may be better than many of the people we talk to.”
GU’s company E.Star International Inc. operates textile mills in Canada and abroad and manufactures them for major retailers such as Walmart, Canadian Tires and Canadian Goose. He is also the chairman of UniSync Group, a Mississauga-based company that provides clothing and clothing to the public and private sectors.
Strategic transformation amid growing supply chain pressure
The MEC’s shift to local production is aligned with a broader trend in Canada’s retail industry as brands reassess supply chains on global tariffs and political tensions, especially in the United States. Although MEC products are rarely sourced in the United States, the changing climate has created a new opening for brands with domestic identity.
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Gu saw this opportunity clearly.
“As a lifelong believer in Canada’s manufacturing and innovation, I am proud to join the MEC’s journey,” Gu said in a press release. “Together, we will strengthen its foundation, expand its reach, and ensure that the MEC remains an important part of the outdoor culture of Canada’s generations.”
MEC was acquired by Kingswood Capital Management in 2020, after retailers applied for creditor protection during the pandemic. Kingswood, a California-based company, will remain the minority investor in the new ownership structure.
Retail comeback: sales rebound and expansion plans
Despite sales declines since 2023, Harlinski said the business began rebounding last year and continued until 2025. He believes that as Canadians are underway to cross-border friction, his interest in domestic travel and outdoor recreation has been updated.
MEC, which operates 26 stores across Canada, will continue to grow, but in a controlled manner. “We are watching new stores open at a moderate pace,” Harlinski said.
Kingswood sees the transition as timely. “It makes sense to hand it over to Tim and his team at this critical moment and to grow the MEC position throughout Canada,” managing partner Alex Wolf said in a statement.
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The new chapter of MEC, once a co-op for outdoor enthusiasts for nearly fifty years, reflects the convergence of its legacy and a clearer, more locally centralized retail strategy.
