Peavey Mart to shutter eastern stores, MB sites bear ‘store closing’ signs

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This article was published 27/01/2025 (276 days ago), so information in it may no longer be current.

As rumours of a chain-wide closure rippled through the smaller centres that make up Peavey Mart’s primary market, the hardware and farm goods retailer remained silent Monday on the fate of the majority of its 90 stores in Canada.

Officially, Peavey Industries LP of Red Deer, Alta., said it will shutter 22 locations in Ontario and Nova Scotia — but the “store closing” signs reported at Peavey locations in Western Canada tell a different story.

The manager of one of six Peavey Mart stores in Manitoba referred questions Monday to Peavey’s head office, but requests for interviews were not answered. There are two stores in Winnipeg; one each in Steinbach, Winkler, Brandon and Swan River.

“All I can say is that there is a ‘store closing’ event in-store right now, featuring 10 to 30 per off discounts — and all items are final sale,” the store manager said.

Last week, the company announced the closure of its 22 Ontario and Nova Scotia stores by April.

“The closures are part of a measured strategy to optimize Peavey’s retail footprint, focusing on reallocating resources to markets with stronger performance while addressing under performing locations,” the company said at the time.

Earlier in January, the company announced a $155 million refinancing arrangement with Boston-based Gordon Brothers, which is an expert in liquidating inventory, including leased retail locations.

Craig Patterson, who does applied research for the University of Alberta Centre for Cities and Communities and is the founder and publisher of the digital trade publication Retail Insider, said despite what the company is or is not saying “it’s obvious” the chain are closing.

“There is a liquidation happening with signs that say ‘store closing,’ so it’s not a secret at all,” Patterson said in an interview with the Free Press.

Last summer, the farm and ranch supply chain announced it was ending its four-year relationship as the holder of the master franchise in Canada for Ace Hardware as of Dec. 31, 2024, something it assumed after Rona and Lowe’s ended their relationship.

It has been reported Canadian Ace Hardware store owners were invited to renew their agreements directly with Ace International, based in the U.S.

In addition to refusing to confirm if it intends to close all 90 stores, late Monday afternoon, the company had removed news releases from its website about the closure of 22 stores and the Gordon Brothers investment.

In one of those releases, Peavey Industries LP CEO Doug Anderson said: “The Canadian retail environment has faced significant disruption over recent years, and Peavey has not been immune to these challenges. We recognize that difficult decisions like these (closing 22 stores) are necessary to create a more stable foundation for the long-term success of our business. While this is a step forward, it’s part of an ongoing process to adapt and rebuild in response to changing market dynamics.”

Among other things, Patterson said it’s another blow to the small town retail landscape in Canada.

“Peavey really does have a purpose in these communities,” he said. “There is not a lot of competition when it comes so some of the farm supply stuff and no competition in smaller markets.”

Peavey Mart had its original roots in Winnipeg and opened its first store in Dawson Creek, B.C., in 1967 under the National Farmway name. It was rebranded Peavey Mart in 1975, when it was a subsidiary of Peavey Company of Minneapolis. It returned to Canadian ownership in 1988.

martin.cash@freepress.mb.ca