Peavey Industries LP, Canada’s largest farm and ranch retail chain, has officially announced the closure of all its stores nationwide. This decision follows the company’s filing for creditor protection under the Companies’ Creditors Arrangement Act (CCAA), granted by the Court of King’s Bench Alberta.
The closures will affect 90 Peavey Mart stores and six MainStreet Hardware locations, with liquidation sales set to begin immediately. This marks the end of a nearly six-decade-long legacy for the Alberta-based retailer, which has been a staple in Canada’s rural and suburban retail market.
Retail Insider was first to report on the company’s store closings on Sunday, following tips and confirmation from several stores that had begun liquidation sales.
Financial Struggles and Industry Challenges
In late 2024, Peavey Industries secured a $155 million financing package from Gordon Brothers, a global advisory and investment firm. The package included a $105 million revolving credit facility, a $30 million term loan, and a $20 million consignment program. These funds were intended to support restructuring efforts and stabilize operations.
Despite these measures, the company faced ongoing financial challenges. On January 21, 2025, Peavey announced the closure of 22 underperforming locations in Ontario and Nova Scotia, aiming to strengthen its operations and position itself for future sustainability.
Doug Anderson, President and CEO of Peavey Industries, acknowledged the difficulties in an earlier statement:
“The Canadian retail environment has faced significant disruption over recent years, and Peavey has not been immune to these challenges. We recognize that difficult decisions like these are necessary to create a more stable foundation for the long-term success of our business.”
However, these efforts were insufficient to overcome the financial difficulties, leading to the decision to close all remaining locations.
CEO Addresses the Closures
In the announcement, Anderson described the decision to close the stores as “profoundly difficult” but necessary under the circumstances.
“For nearly six decades, our customers’ loyalty, employees’ dedication, and the resilience of the communities we serve have been the cornerstone of our business. We remain focused on working with our partners and stakeholders to preserve the Peavey brand and the value it represents.”
The company emphasized that its immediate focus is to generate liquidity through the store closure process while continuing to work with creditors and stakeholders to explore potential opportunities to preserve its brand.
In a press release, Peavey Industries provided a detailed explanation of what it blames for its financial troubles.
“The decision to seek creditor protection and close all stores was made after thorough evaluation of available options, in consultation with legal and financial advisors. The Canadian retail industry is experiencing unprecedented challenges, including record-low consumer confidence, inflationary pressures, rising operating costs, and ongoing supply disruptions along with a difficult regulatory environment. These factors have created significant obstacles for businesses like Peavey.”
A Look at Peavey’s History
Founded in 1967 in Winnipeg, Manitoba, Peavey Industries built its reputation as a go-to destination for farm, ranch, and rural lifestyle products. Over the decades, it expanded its footprint across Canada, catering to customers in both rural communities and suburban areas.
In 2016, the company acquired 39 former TSC Stores, rebranding them under the Peavey Mart banner in 2021. The acquisition aimed to strengthen the retailer’s presence in Ontario, one of its key growth markets.
In March 2020, Peavey Industries acquired the Canadian master license for Ace Hardware from RONA Inc., a subsidiary of Lowe’s Canada. This acquisition included 107 Ace-branded retail locations across the country and was part of Peavey’s strategy to bolster its presence in the hardware and home improvement sector.
However, in June 2024, Peavey Industries announced that it would end its relationship with Ace Hardware International, effective December 31, 2024. This decision was part of a strategic reevaluation amidst challenges such as supply chain disruptions and rising operational costs.
Following this announcement, Ace Hardware International informed Canadian dealers in October 2024 that it would no longer support or supply Ace-branded dealers in Canada starting in 2025. This development impacted nearly 100 dealers across seven provinces, adding further strain to Peavey’s operations.
Impact on Employees and Communities
The closure of Peavey stores will leave a significant void in the communities it has served for nearly six decades. Many Peavey Mart and MainStreet Hardware stores were located in smaller towns and rural areas, where they were not only retail outlets but also essential community hubs.
For employees, the closures bring an uncertain future, with job losses likely to impact local economies, especially in areas where Peavey was a major employer. Families who relied on these jobs may face financial challenges as they seek new opportunities.
In addition to the economic impact, rural communities will lose access to vital agricultural and home improvement products, forcing residents to travel further for these goods. The departure of Peavey Industries marks the end of a chapter for communities that relied on and grew alongside the retailer.
Industry-Wide Challenges
The difficulties faced by Peavey Industries mirror broader struggles in Canada’s retail sector. Retailers across the country have been grappling with a confluence of economic challenges, including high inflation, shifting consumer spending patterns, and rising interest rates.
For rural-focused retailers like Peavey, these challenges are further magnified by declining agricultural incomes and an increasingly competitive retail landscape.
Liquidation Sales Begin
Liquidation sales will commence immediately at all remaining Peavey Mart and MainStreet Hardware locations. Customers can expect discounts on inventory as the company winds down its operations.
As the retailer closes its doors, it leaves behind a significant legacy in Canadian retail, having served as a cornerstone for rural communities for nearly 60 years.
