(rdnewsNOW/Josh Hall)

By Josh Hall | @Vancan19

order obtained for creditor protection

Peavey Industries confirms closure of 96 stores across Canada

Jan 27, 2025 | 12:15 PM

Peavey Industries has confirmed that it will close 90 Peavey Mart locations and six MainStreet Hardware locations across Canada.

The Red Deer-based company issued a statement just after 8 p.m. Monday after a day of speculation, which followed a report by website Retail Insider.

‘Store closing’ signs have been up at the Red Deer location and many others this week, but with no accompanying announcement to explain why.

It was just last week when Peavey Mart’s parent company, Peavey Industries, announced it would close 22 Peavey Mart locations in Ontario and Nova Scotia as part of organizational restructuring.

At the time, it was said those closures were part of a measured strategy to optimize the company’s footprint, reallocate resources, and ultimately strengthen Peavey Industries’ future.

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Peavey Mart Red Deer, as seen Jan. 27, 2025. (rdnewsNOW/Josh Hall)

Just a few weeks ago, on Dec. 31, 2024, Peavey Industries announced it had secured $155 million in financing from Gordon Brothers to obtain inventory and drive operational improvements.

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READ MORE

• Peavey Mart building new ‘flagship’ location in Red Deer
• Westerner Park unveils the ‘Peavey Mart Centrium’

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In the new statement, the company says 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 in Alberta.

“This was a profoundly difficult decision, but one that allows us to explore the best possible alternatives for the future of the company,” Doug Anderson, President and CEO of Peavey Industries LP, said Monday.

“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.”

They also say that the decision to seek creditor protection now was made after thorough evaluation of available options, and in consultation with legal and financial advisors.

They note that 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.”

It was March 2021 when Peavey Industries announced it would build a new flagship location in Red Deer, which is the same city in which the company’s headquarters are situated.

Four months later, the company purchased naming rights to the Westerner Park Centrium, the home of the WHL’s Red Deer Rebels. That deal was slated to last five years. It was also said at that announcement that Peavey would become Westerner Park’s official agricultural supply partner.

Prior, in March 2020, Peavey Industries acquired Ace Brand from Lowe’s Canada, and in June 2023, it purchased Guy’s Freightways.

Peavey Mart’s roots go back to Canada’s centennial year, 1967, when it began as National Farmway, with the first location opening in Dawson Creek, B.C., according to the company website.

In 1975, it became Peavey Mart, a subsidiary of Peavey Company, based in Minneapolis, and then in 1984, it returned to Canadian ownership, which is where it has remained to this day.

Expansion came in 2017 with the acquisition of TSC stores Ontario and Manitoba. It also runs stores under the MainStreet Hardware in various Alberta locations.

rdnewsNOW has reached out to Gordon Brothers for a statement, and will update this story if they provide one.