It appears that both sides may be correct, sort of.
From a business point of view the Board of Directors actions may be the best way to preserve as much of the operating business as possible.
From a co-operative point of view the opposing MEC Members are clearly correct that this goes in opposition to MEC's founding principles and values and those of co-operatives in general.
Need it be stated that MEC is a co-operative and not a for-profit business.