Canadian retailer Peavey to close all stores
Peavey Industries, 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.
Peavey will now begin store closing sales at all locations across Canada. This includes 90 Peavey Mart stores and six MainStreet Hardware locations. The closures and liquidation efforts will commence immediately. The company announced last week the closing of a smaller number of stores in Ontario.
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 sold a range of outdoor power equipment products and brands. One Peavey location website we looked at listed brands such as Black & Decker, Dewalt, Husqvarna, Milwaukee, Swisher, Yard Machines, and more.
CTV News reported that Toronto-based retail analyst Brad Winder said he was surprised about the news of all the stores closing. As a medium-sized retailer, Peavey paid more for products than bigger stores that buy larger quantities of items, Winder said.
“Perhaps the farm industry is under a lot of pressure right now, price-wise, and folks started to look online or look at other big box stores that may carry similar assortments,” Winder said in a video interview with CTVNews.ca on Monday. “So that may have been an issue in terms of why they bowed out … their pricing may have been a little high.”
Winder expects Home Hardware, Home Depot and Amazon will likely pick up the business, though he said consumers appeared to be sad about the news on social media.
