Sources have confirmed to Retail Insider that Peavey Mart, a Canadian retail chain known for its agricultural supplies, hardware, and home improvement products, is closing all of its stores nationwide. Liquidation sales began on the weekend. The store closures include the flagship location in Red Deer, Alberta, where the company’s headquarters are also based. This marks a significant and surprising turn of events for a company with deep roots in Canadian retail, dating back to its establishment in Winnipeg in 1967.
(Update: Peavey Industries confirmed store closures on Monday evening in a press release)
A Legacy of Growth and Acquisitions
Peavey Mart has long been a staple for rural and small-town communities, catering to farmers, ranchers, and homeowners. Over the years, the company expanded from its Western Canada base into Ontario and other regions, particularly following its acquisition of TSC Stores in 2016. That move helped establish Peavey Mart as a household name in Ontario, diversifying its reach and bolstering its product offerings. It was also a huge expense.
In 2020, the company further broadened its scope by acquiring the Canadian master license for Ace Hardware from Lowe’s-owned RONA Inc., adding 107 Ace Hardware locations to its portfolio. This strategic acquisition was part of Peavey Industries’ efforts to compete in the hardware and home improvement sector against larger rivals like Home Depot and Canadian Tire.
However, Peavey’s relationship with Ace Hardware International came to an end in 2024, following the announcement that the partnership would cease on December 31, 2024. This decision marked a turning point for the company, forcing it to refocus on its Peavey Mart and MainStreet Hardware brands.
Financial Struggles and Early Signs of Trouble
Last week, Peavey Industries announced plans to shutter 22 underperforming Peavey Mart locations in Ontario and Nova Scotia by the end of April. At the time, the closures were presented as part of an organizational restructuring aimed at stabilizing the business and positioning it for future growth.
Doug Anderson, President and CEO of Peavey Industries, addressed the challenges in a previous statement:
“The Canadian retail environment has undergone significant disruptions in recent years, and Peavey has not been immune to these challenges. These closures are a challenging yet necessary step to stabilize and position our business for future growth.”
Despite these efforts, it now appears the company’s financial difficulties have proven insurmountable, leading to the closure of all 90+ stores across Canada.
Financing and Restructuring Efforts Fall Short
In its bid to remain viable, Peavey Industries had secured a CAD $155 million financing package from Gordon Brothers. The package included a $105 million revolving credit facility, a $30 million term loan, and a $20 million consignment program. This financial injection was intended to facilitate restructuring efforts, support ongoing operations, and provide a lifeline to the struggling retailer.
Additionally, Peavey Industries collaborated with Gordon Brothers to ensure a smooth transition for affected employees and communities. However, these measures were ultimately insufficient to save the business.
Impact on Communities and Employees
The closure of Peavey Mart will leave a significant void in the Canadian retail landscape, particularly in rural and small-town markets where the chain has long been a trusted resource for agricultural and home improvement needs. The closures are also a major blow to the company’s workforce across the country.
While Peavey Industries initially expressed a commitment to supporting its employees during the transition, the abrupt announcement of a full shutdown leaves many workers and communities grappling with uncertainty.
A message from the Peace River Manager
In a heartfelt statement shared on Facebook, the manager of the Peace River, Alberta, Peavey Mart location expressed regret about the closures. The post sheds light on the situation and offers a glimpse into the company’s struggles over recent years. The manager wrote:
“Peace River Community,
It is with regret that I inform you of the upcoming closure of Peace River Peavey Mart, along with all other Peavey Mart locations across Canada. While many details are being kept confidential, I will keep you updated as we receive more information from the corporate team. At this time, I do not have a time frame; my best guess is 3 to 6 months.
Until an official statement is released by the company, I can only offer my personal perspective on the situation. Since 2016, Peavey Mart has expanded rapidly, acquiring over 70 stores in Eastern Canada, opening new stores, and acquiring several other businesses. However, growth was met with challenges, including a decline in business levels and rising interest rates. Unfortunately, many of the acquired stores did not prove profitable, and the company’s efforts to adjust did not have the desired results.
As a last resort, Peavey partnered with Gordon Brothers, an American investment firm, which I believe now holds a majority stake in the company and are making all decisions going forward. It appears the current plan may be to liquidate and close all locations, with potential rebranding, though which stores will remain open is still uncertain.
Please note that this is my personal opinion, and I am sharing it to help clarify the situation for our valued customers. I kindly ask that you direct any concerns toward our corporate offices, as these decisions are beyond the control of the staff here in the store.
We have worked diligently to serve you, and we appreciate your understanding during this time. It’s difficult to come to terms with the closure of so many profitable locations in Western Canada, with Peace River being one of the most notable. The Peace River location recently achieved top sales growth company-wide, consistently delivering a healthy profit despite Peavey’s constant inventory challenges.
I would like to express my sincere gratitude to all of our customers. It has been a pleasure serving the Peace River community, and I will miss it when our time here comes to an end. If you have any questions, please feel free to visit the store, and I will do my best to provide answers. At the current moment, the company has told us they are not ready to make a statement yet.”
Update: Press Release from Peavey Industries
Peavey Industries confirmed Monday evening that all Peavey Mart stores will be closing. The following is the press release that was forwarded by email to Canadian media sources:
“Red Deer, Alberta – January 27, 2025 – Peavey Industries LP (“Peavey” or “the Company”), Canada’s largest farm and ranch retail chain, announced today that it has sought and obtained an Initial Order for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) from the Court of King’s Bench Alberta.
Following the recently announced closures of 22 stores in Ontario and Nova Scotia, the Company will now begin store closing sales at all remaining locations across Canada. This includes 90 Peavey Mart stores and six MainStreet Hardware locations. The closures and liquidation efforts will commence immediately.
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.
“This was a profoundly difficult decision, but one that allows us to explore the best possible alternatives for the future of the Company,” said Doug Anderson, President and CEO of Peavey Industries LP. “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’s immediate priority is to generate liquidity through the closure process while continuing to work with funders, partners, and stakeholders to explore potential opportunities to preserve the brand.
Peavey Industries LP is committed to providing regular updates as the situation develops.”
Our local Peavy Mart (on Narin Ave @ Panet) in the space that was previously a Zellers in the 80s and early 90s. The store was a McDiarmid Lumber location. I haven’t been there since they acquired McDiarmid Lumber.
Within the span of two days, you have reported first that just 22 stores were closing and now you report that all 90 stores are closing! That’s quite a difference! Which story is correct?
The most recent article (Sunday) with all stores closing is unfortunately correct — I’ll add a note to the previous article.
Peavey
Thankyou very much Justin Trudeau, killing thd country and a lot of businesses.
Hey David Gillard, the pm really doesn’t have a great deal of control over any companies success,you need to do a kettle research on what the pm of Canada’s job description, blanket statements like you posted only prove how much of a backwards redneck you are, be informed instead of spouting garbage.
It is the PM’s job to be involved in all aspects of ones life. A PM’s policy if fact has a great deal to do with a companies success. Would it not be fair to say a PM affects a persons ability to purchase? Would it be fair to say that because the government gives you “free stuff”, my wallet is affected? Reading a book could be a great place to start.
I suppose that everything could be blamed on the PM and the Federal Government if you twist hard enough.
How convenient for those who prefer simple explanations,
My experience would lead me to think the failure is one of management. If you don’t pay attention to fundamentals, especially your employees, there are inevitable consequences.
Did you actually read the story on why the business has failed it might help rather than blaming politicians
Huh?
The pm has a major effect on economic policy.
Well I believe your point is valid, why do you have to be so insulting?
I think they plan to move to USA and reopen here owned solely by them …but that’s just ne someone who rarely shops let alone peavey.its in the cards Canada’s become backed to a corner.tarrifs taxes will scare any company away..
Considering the current government has imposed ridiculous taxations on businesses over the last 9 years…. Dropped the dollar from what it was 9 years ago. Instituted a carbon tax that didn’t help the planet only the Federal coffers. Not getting new energy contracts aka Japan, Greece, Germany all wanted LNG…which helps the Canadian economy and the dollar… So I would educate yourself on what the federal government does before stating the PM has nothing to do with major retailers ability to survive in the Canadian economical climate..
Great comment Gromit. Couldn’t have said it better myself!
Hey, Gromit, the PM really doesn’t have great control over personal bank accounts, but here we are. You boldly lecture on blanket statements, completely ignorant of the one you just made. You have no high ground over Mr. Gillard (he’s that “backwards redneck” you were talking down your nose to).
Business grants, tax incentives, economic policy, tax rates, regulation changes and licencing are but a few of the responsibilities of the federal government that directly affect a business’s bottom line and success. Not all effects are negative. The federal government hands out big fat government contracts to companies as well. But feel free to lecture the masses on how the PM has no great control over them, either. Cough *SNC* Cough.
A kettle (sic) research is in order. Be informed Gromit. You wouldn’t want to spout garbage now, would you?
I acknowledge that the Prime Minister doesn’t explicitly or directly control the success or failure of individual companies. However, it’s worth noting that broader economic policies set by the government—particularly those aligned with Liberal agendas—can have an impact on the business environment, including medium to large Canadian retailers.
While it’s unfair to entirely blame the PM or the Liberal government for store closures, it’s also important not to overlook the role of economic policies in shaping the challenges these companies face. Poor economic policies can create unfavorable conditions that contribute to the struggles of Canadian businesses.
It’s easy for some to make the PM a scapegoat, especially for those with strong partisan views, but there’s no denying that the Liberal government shares some responsibility for the current economic difficulties. A nuanced discussion, rather than blanket accusations or dismissals, is always more productive.
Ah yes, JT, kicking every dog and ruining every company. How long will you cling to your totem of hatred – the rest of your life, every hangnail, every stubbed toe a sign of Trudeau’s personal efforts to hurt you? More likely, the answer is borrowing money to expand. The expansion didn’t provide enough money to pay the interest on the debt.
Bang on…..too much too soon and lost focus on fundamentals
Got your facts all wrong. It’s US companies like Walmart and Home Depot that are pushing out Mom and Pop places like this. Stop supporting them and shop Canadian. Or just move to the states.
Trudeau’s fault? How much $$ do you spend at USA owned stores like Costco or home Depot? Canadians need to learn to build and patronize Canadian firms, not just USA owned ones.
Peavey in Pembina never seems busy, and their prices are quite high. They never reduce items much when they have a sale.
This location had a Zellers there,that was more suited to the people who lived there.
I live in LaSalle , 15 minutes away where there are farmers and such
Before the Zellers store it was a pharmacy. I remember when the pharmacy was built. The west wall was concrete block that was not supported and fell down over the weekend. They put a large crane inside the building to hold the wall up while it was being rebuilt. Then they realized that the crane was now inside the building. So, they knocked the wall down to get it out. Later a car drove through the south wall, knocking down the shelving inside. The building will now undergo a further face lift when someone else moves in. I enjoyed shopping at Peavey because the staff were so friendly and the selection was great. Time to move on.
So sad. Been an employee for a long time. Best place I ever worked.
The Peavey in Cambridge ON is a disorganized, uninspiring dump so this news is hardly surprising.
Since they opened the Panet Rd Location in WPG I’ve always appreciated the store for what it was. Bought many unique gifts for family who live in the rural areas. It’s never been that busy which was nice in a way but I couldn’t see them lasting. The bulk of their inventory were items available at a number of nearby stores for cheaper. The hardware market has been saturated for a long time, more specifically since the big boxes like Home Depot / Rona came to town. It’s hard to compete with that kind of buying power.
I saw it coming, no stock on the shelves and the company trying to expand too fast was just asking for trouble. The government has no part in this failure, the fault here lies with upper management. This is not the first time I have seen this happen.
That and vulture capitalists.
I know little of the company, but 60 years and a family outfit, makes me wonder, as with many others, if this was a failed generational baton pass.
This article is vastly different from the Gordon Brothers statement:
“Alongside the capital needed to continue operations, our holistic review and evaluation of Peavey’s entire portfolio and ongoing strategic guidance underscores our innovative and comprehensive solutions,” said Kyle C. Shonak, Chief Transaction Officer, North America at Gordon Brothers. “By bringing together our combined deep asset experience in lending, retail and real estate, we provided the increased liquidity and operational flexibility needed to maintain the long-term success of this family business.” Very confused how so much changed in a short period of time and how anyone plans on being paid back a loan that was already spent….
I was sad to read about the 22 locations closing the other day, the one in my town being one of them….now this. If I may, I can give some insight from what I’ve seen with this location. I absolutely love Peavey Mart/tsc. They had one gentleman that ALWAYS helped me find anything and was soooo amazing everytime I went there. That being said, the store had its issues and wasn’t to do with him or any other employees who worked on the floor. The layout of the store was odd, and didn’t navigate well, they would have sales with great discounts, but for the most part it was more limited than a hardware store, but more selection than can tire for some things. They’re theft deterrent measures were non-existant, I know alot of folks who wouldn’t have much reason to go there unless it was to steal, seriously. I could never but apparently it was rampant. They had rodent issues, a couple chipmunks in the store once n a while, but I also would check the bin in the back and I know that because of rodents they lost alot of product. I’ve gotten a dozen bags of dog food, I got at least a dozen pairs of shoes, half dozen pairs of winter coveralls and overalls, a half dozen winter jackets, 2 dozen pairs of slippers, random electrical, wood stove pipe for house exterior, chicken waterers, welding wire, display model welding unit that just needed the main guts, trailer dolly, lots of paint, wood pellets, 6 sump pumps, dash cam, autodarkening welding helmet, honestly…I could go on and on. Seriously. I hate to sound sexist, but I could tell it was a female manager because a man would have dealt with the problem instead of just dealing with the aftermath. Squirrels, mice nesting in shoes, eating packaging of dog food or other packaging leading to discard. Its absolutely insanity the amount of loss just from this one store. Its devastating. Dont even get me started with the spring chicks and the discard of the ones who didn’t survive the trip. Couldn’t even put them back in the box they ship em in, just thrown in the bin. So upsetting. Id love to have a word with the regional manager, ill tell them why this store failed and why its not surprising the rest are being culled as well. You can’t run a business with blinders on, they had a few gems with fantastic employees, but he got sent south to train and it was downhill ever since.
hate to tell you this, but i had a male manager for 8 years at one of these stores and the rodents were so bad they were running across customer’s feet at the tills. gender has nothing to do with it, the dc’s insistence on sending whole groups of mice with their product and refusing top down to allow anything substantial to be done was the problem there.
Too bad. Many of the small town locations including the one in St Paul Alberta were the only ones within hundreds of km to carry decent quality tractor and other power equipment parts, and farm and ranching supplies at reasonable prices.
Now the only options are either the handful of remaining Canadian wholesalers, ordering from the USA, or just giving up and going without. None of those 3 options are cheaper, faster, or a better outcome.
Perhaps you can compile the list of landlords who will be impacted here.
Just questions..when is the Peavy in Sarnia closing? When can we expect the sale of 50% plus off?
Just questions..when is the Peavy in Sarnia closing? When can we expect the sale of 50% plus off? My personal belief for businesses closing is Trump, Ford and Trudeau.
Garry Jan 27,2025 at 0650 am
Now you know how President Trump is going to screw Canada all his big buddies that has money like the Gordon Brothers who is strictly USA and other company who has business here in Canada
They just shut down the stores where we have to really pay for merchandise now coming into Canada
I see an opportunity for Home Hardware, a well run and similar style business offering personalized service, taking over some locations. It might not be difficult to reshape and re-emerge even stronger. Peavey did an excellent job winning customers, so there is a legacy potential to support rebranding.
Hone hardware is next to go busto
Personally, TSC should have kept the stores. The stores were better ran, better inventory and certainly better customer service in the head office. The last year, many credit accounts were closed without warning and in doing so, people will shop elsewhere. Many companies saw their credit or house accounts shut down and these customers purchase a lot more than a bottle of soap on those accounts. Dealing with their peavey credit
department was usually difficult as you couldn’t get them or they don’t return calls for what ever reason. They kept TSC employees, some thirty years service and now for those efforts, dismissed. Maybe someone will consider saving a few stores. Thanks to the Trudeau Government who made things so bad in ontario, who would consider that option. No Matter the outcome, thankyou to the store staff that have remained loyal to them and consumers.
Things started to change when they moved their advertising to an agency in Toronto… and got away from their grass roots.
The TSC acquisition was a cancer that PM never could shake. Another Western business shooting way beyond their reasonable market, eyes bigger than their mouths. You don’t go from regional store closures to nationwide almost overnight if the business is being run well. Unfortunate but our local PM is pretty gross and being the anchor store to a small town mall struggling to stay alive it may take other businesses with it.
Well because TSC was better and Peavy was a major downgrade.
Here in Ontario we went from some very good TSC stores to Peavy mart with less selection, cheaper products and higher prices. Of course the stores didn’t do well! Very sad they had to buy TSC and ruin a good business.
All you people that are pointing your finger at the PM need to quit buying your stuff on AMAZON. That’s why stores are closing. Get real!!!
Here is a question for Doug Anderson, Why on earth did you put the same idiot in charge in the financial aspect of the company ( Peavey ) ! This was the same individual who ran TSC into the ground?
It’s a shame that peave mart is shutting its doors
It was the go to place for agriculture products
After McLeod‘s closed that was the place to get your stuff
It will be a sad day in Canada 😥
Very sad to hear that Peavey Mart is shutting down. Was a great place to buy work gloves and clothes, along with yard and garden products and agriculture needs. Feed for birds, pets and horses was always well stocked.
I believe the expansion was too rapid.
Very sad to see this store go. It was a great place to get agriculture supplies and work clothes.
Biggest problem is some of their other products were priced higher and they had trouble competing. I think they could have restructured to reduce the types of products they carried and instead catered back to agriculture.
This is a big loss to agriculture folks.
Hopefully another will rise out of the dirt to take its place? With respect to other comments, poor management both within the organization and in the broader political arena, can likely all take some of the credit for this demise, by not understanding/ anticipating the full scope of their policy decisions.
No surprise. Except for the occasional sale item, they’ve always been overpriced by a huge margin.