RED DEER, Alta. – Canada’s largest farm and ranch retail chain, Peavey Industries LP, announced on Jan. 27 that it has obtained creditor protection under the Companies' Creditors Arrangement Act (CCAA) from the Court of King’s Bench Alberta, and confirmed it will begin closing sales at all 90 Peavey Mart stores and six MainStreet Hardware locations across Canada, the company said in a media release on Monday evening.
The closures and liquidation efforts will commence immediately.
The decision follows the recent announcement of closure of 22 stores in Ontario and Nova Scotia and comes amid challenges including inflation, supply disruptions and rising costs
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 company said. 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, they 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, the company said.
SaskToday will continue to follow the situation.
