Editor’s note: Retail Insider learned over the weekend that all Peavey Mart stores are currently being liquidated with store closures planned.
Here is the article originally published in Retail Insider on Friday, January 24, 2025:
Peavey Industries LP, the company behind Peavey Mart, has announced plans to close 22 store locations across Ontario and Nova Scotia by the end of April 2025. The closures form part of a larger strategy to streamline operations and focus on long-term growth in response to changing market dynamics.
Peavey Industries’ says the store closures will optimize its retail footprint by focusing resources on higher-performing markets. The company has partnered with Gordon Brothers Realty Services, a global leader in restructuring and real estate advisory, to assist in the transition.
Doug Anderson, President and CEO of Peavey Industries, highlighted the importance of these changes, stating:
“The Canadian retail environment has faced considerable disruptions in recent years, and Peavey has not been immune to these challenges. These closures are a difficult but necessary step to stabilize and position our business for future growth.”
Supporting Employees and Communities
The closure of 22 locations will significantly impact employees and the communities that Peavey Mart has served for decades. Peavey Industries expressed its gratitude to its employees and acknowledged their invaluable contributions:
“To our employees, we cannot thank you enough for your hard work and passion. You have been the heart of Peavey Mart and leave behind a lasting legacy.”
The company says it is working with Gordon Brothers to ensure a smooth transition while providing support to employees and communities during this challenging period.
Commitment to Customer Experience
Despite the closures, Peavey Industries says it remains focused on delivering exceptional service to its customers. Jest Sidloski, Vice President of Customer Experience, reassured stakeholders of the company’s dedication:
“While these closures are necessary, we remain committed to providing the value-driven, reliable service our customers have come to expect. This is the beginning of a broader effort to strengthen our operations and adapt to better serve our communities in the years ahead.”
To maintain customer loyalty, Peavey Industries says it is enhancing its e-commerce platform and focusing on optimizing operations at its remaining stores.
Financial Backing to Support Restructuring
Peavey Industries has secured a CAD $155 million financing package from Gordon Brothers to provide the liquidity and operational flexibility necessary for its restructuring efforts. The package includes a $105 million revolving credit facility, a $30 million term loan, and a $20 million consignment program.
Karen Dilon, Chief Financial Officer of Peavey Industries, emphasized the importance of financial and vendor partnerships during this time:
“The support of our vendors and partners has been instrumental in helping us navigate this process. These strategic adjustments will enable us to build a more resilient business model that benefits all stakeholders.”
List of Affected Locations
The following Peavey Mart locations are scheduled to close by the end of April 2025:
- Arnprior, ON
- Bedford, NS
- Bowmanville, ON
- Brockville, ON
- Chatham, ON
- Collingwood, ON
- Cornwall, ON
- Goderich, ON
- Grimsby, ON
- Kingston, ON
- Kitchener, ON
- Lambeth, ON
- Mount Forest, ON
- New Liskeard, ON
- Sarnia, ON
- Smiths Falls, ON
- St. Catharines, ON
- St. Jacobs, ON
- St. Thomas, ON
- Sudbury, ON
- Woodstock, ON
- Uxbridge, ON
These closures follow earlier announcements regarding the Rockland and Hyde Park locations in Ontario.
Peavey Industries’ History of Serving Rural Communities
Founded in 1967 as National Farmway Stores in Winnipeg, Manitoba, Peavey Mart was rebranded in 1974. After becoming a Canadian-owned company in 1984, Peavey Industries expanded significantly across Western Canada.
The company made notable acquisitions in 2016, taking over the Canadian operations of Tractor Supply Company (TSC) and rebranding those stores under the Peavey Mart banner. In 2020, Peavey Industries acquired the Canadian master license for Ace Hardware, adding over 100 stores to its portfolio and broadening its reach across the country. That partnership ended in April of this year.
Looking Ahead: A Focus on Stability and Growth
The closures represent an important step in Peavey Industries’ larger strategy to create a more sustainable business model. The company says it remains committed to evaluating its operations, adapting to customer needs, and investing in key markets.
“We recognize this is a challenging time for our employees and customers,” Anderson said. “However, these steps are necessary to ensure a strong future for our company. We are committed to evolving and continuing to serve our communities with the same dedication that has defined Peavey Mart for decades.”
Sounds like they are shutting down everything now, even the Red Deer store is closing! That doesn’t sound like restructuring, more like foreclosure
It kind of sounds like they maybe overextended themselves buying a bunch of unprofitable stores with different brand names recently. Debt and bad business decisions are quite often what sinks companies.