One of Canada’s most prominent duty-free retailers has entered receivership, as the Ontario Superior Court of Justice ordered a takeover of Peace Bridge Duty Free Inc., the long-standing operator of the duty-free shop at the Peace Bridge crossing between Fort Erie, Ontario, and Buffalo, New York.
In an order issued on April 17, 2025, Justice Jessica Kimmel appointed msi Spergel inc. as receiver over the retailer’s assets. The decision follows mounting financial challenges and substantial debt owed to creditors, including the Royal Bank of Canada (RBC) and the Buffalo and Fort Erie Public Bridge Authority, the landlord for the store.
Mounting Debts Spark Receivership Proceedings
The action comes after RBC filed an application earlier this year, claiming Peace Bridge Duty Free owes approximately $3.3 million in outstanding debt. Simultaneously, the Buffalo and Fort Erie Public Bridge Authority asserts that the retailer is in arrears of up to $17 million in unpaid rent and other obligations under the lease agreement.
According to court documents, Peace Bridge Duty Free Inc. has operated the high-profile store for more than 30 years, serving both Canadian and American travellers. The duty-free shop, situated at one of the busiest land crossings in Canada, was historically open 24 hours a day and employed around 90 staff members.
Despite its prime location and longstanding operations, the retailer has struggled financially in recent years, burdened by declining cross-border traffic and growing operational costs.
Lease Terms and Financial Obligations
Peace Bridge Duty Free’s current lease, signed on July 28, 2016, is scheduled to expire in October 2031. The lease mandates a minimum base rent of $4 million annually, equivalent to $333,333 per month, in addition to payments for sales taxes, property taxes, operating costs, and utilities.
The court filings revealed that despite arguments from the retailer suggesting the amounts owed are somewhat lower, the debt remains in the millions. As a result, the appointment of a receiver was deemed necessary to safeguard the company’s assets, manage operations, and pursue a structured liquidation or restructuring process.
Powers Granted to the Receiver
Under the terms of the receivership order, msi Spergel inc. is empowered to take immediate control of all assets and operations of Peace Bridge Duty Free. The Receiver is authorized to:
- Manage and operate the business.
- Collect all outstanding receivables.
- Sell or lease assets with court approval for larger transactions.
- Initiate or defend legal proceedings as necessary.
- Oversee the sale or potential liquidation of the business.
The order also stays any legal actions or enforcement measures against the company without court permission and authorizes the Receiver to borrow up to $200,000 to fund ongoing operations, secured by a court-approved charge.
Cross-Border Travel Slump Fuels Financial Woes
The financial troubles facing Peace Bridge Duty Free reflect broader struggles across Canada’s duty-free sector.
According to U.S. Customs and Border Protection (CBP) data, the number of travellers crossing from Canada into the U.S. plunged by nearly 900,000 in March 2025 compared to the same month the previous year—a 17% year-over-year decline.
Observers attribute the steep drop to escalating political tensions, including President Donald Trump’s intensified trade policies and rhetoric critical of Canada. The decline in cross-border visits has eroded sales at duty-free outlets, which heavily rely on high volumes of cross-border traffic.
The impact has been widespread, but for retailers such as Peace Bridge Duty Free, already facing high fixed costs like minimum lease payments, the collapse in traveller numbers created insurmountable financial strain.
Continuing Operations for Now
Despite the receivership order, the Peace Bridge duty-free store continues to operate for the time being. The appointed Receiver will assess options for the business, which may include selling the assets, negotiating with creditors, or even trying to maintain ongoing operations if feasible.
However, given the magnitude of the debts and the sustained drop in cross-border traffic, significant challenges lie ahead. Sources suggest that if no buyer or restructuring solution emerges, the store’s future could involve liquidation of assets to satisfy creditor claims.
Broader Implications for Duty-Free Retail
The situation at Peace Bridge Duty Free may foreshadow broader challenges for land duty-free operators nationwide. With political instability affecting travel patterns, and increasing operational costs, other border retailers may soon find themselves grappling with similar financial headwinds.
The Peace Bridge Duty Free store, once a bustling 24-hour operation symbolizing the vitality of cross-border commerce, now stands as a cautionary tale of how shifting geopolitical dynamics and economic realities can rapidly upend long-established businesses.
