Every Peavey Mart location across Canada, including the Ace Hardware store in Port Hardy, will be closing.
Previously, the Red Deer-based Peavey Industries LP announced it will undergo "organizational restructuring."
The chain of hardware and agricultural supply stores announced on Jan. 21 the closure of 22 Peavey Mart locations in Ontario and Nova Scotia. Then on the evening of Monday, Jan. 27, Peavey Industries LP announced it has sought and obtained an initial order for creditor protection under the Companies' Creditors Arrangement Act from the Court of King’s Bench Alberta.
The company will now begin store closing sales at all remaining locations across Canada.
Overall, 90 Peavey Mart stores and six MainStreet Hardware locations will be shutting their doors. The closures and liquidation efforts will commence immediately, the company has confirmed in a media release.
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. Peavey Industries stated 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, the company added.
“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 states it is committed to providing regular updates as the situation develops.
