Rumours circulating last week in High Prairie and Peace River that the local Peavey Mart stores might be closing are now confirmed.

In fact, the entire chain of 90 stores right across Canada is closing. Peavey Mart is known for home improvement products, hardware, and agricultural supplies.

Liquidation signs are already appearing with sales having started on the weekend just past. Signs promoting sales are expected in High Prairie shortly and should be appearing this week.

The closings are 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.

Since that time, the company expanded from Western Canada base into Ontario and other regions, particularly following its acquisition of TSC Stores in 2016. That expansion established Peavey Mart as a household name in Ontario, as it also helped diversify its reach and its product offerings.

In 2020, the company further expanded by acquiring the Canadian master franchise license for Canada for American based Ace Hardware. This was not a purchase of stores, but was the right to be the franchise manager in Canada for Ace Hardware stores in Canada. This agreement was from Lowe’s-owned RONA Inc, also an American hardware chain that had previously taken over Canadian owned RONA.

This agreement added 107 Ace Hardware locations to the Peavey chain. This 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.

Last week, the week of January 20th, Peavey Industries announced it was closing 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, had 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.”

However, the circumstances now seem to have escalated. It now appears the company’s financial difficulties have proven insurmountable, leading to the closure of all 90+ stores across Canada.

Before the closing announcement, last year Peavey Industries said it 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 money was intended to help restructuring efforts, support ongoing operations, and provide a lifeline to the struggling retailer.

It is unknown the status of these financial arrangements.

The closings of Peavey Mart stores will leave a significant void in the Canadian retail landscape. This will be especially noticed in Peace River and High Prairie, but in all rural and small-town markets where the chain has been a trusted source for agricultural and home improvement needs.

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.”

by South Peace News Staff – With Files from LethbridgeNewsNow.com and Retail-Insider.com