Page 17 - Jan-Feb-2025 - REPORTER

PEAVEY INDUSTRIES

CLOSES OPERATIONS

eavey Industries LP announced on were challenging for Peavey occurred in June challenges.” Doug Anderson, president and
PJanuary 27th that it would close all its 2024 when it was announced that Peavey CEO of Peavey Industries LP said.
Peavey Mart stores. Peavey Mart was a Red would end its relationship with the Ace What happens to the employees, the
Deer, Alberta based retail chain providing Hardware banner. As of December 31, 2024, inventory and the store locations has
agricultural supplies, home improvement all Ace Hardware stores would be unable to not been determined as of our printing
products and hardware items. It began in fly the Ace banner. Further to that in October deadline. Peavey had stated in their original
1967 as National Farmway Stores and was 2024 the US headquarters of Ace Hardware announcement of the 22-store closing that
renamed Peavey Mart in 1974. It returned announced that despite the withdrawn they would close by the end of April. No word
to Canadian ownership in 1984. It operated Peavey agreement, Canadian Ace dealers on if the original timeline with those stores
predominantly in Western Canada until 2016 would not be supplied or supported by Ace in would remain nor has an announcement for
when Peavey Industries acquired the 51 TSC 2025. the balance of the stores been offered.
Canada stores, along with a distribution centre In mid January, Peavey Industries The closure of Peavey Mart will leave a
in London. This expansion more than doubled announced that it would close 22 under significant hole in the farm, ranch, and rural
the store count from the 34 stores in Western performing stores in Ontario and eastern retail market for hardware, tools, and supplies.
Canada to 85. This expansion also expanded Canada by the end of April. The slated How this affects stores that operate in those
coverage of Canada to include Manitoba and store closures were aimed at stabilizing the areas is to be determined. In the short term,
Ontario. business. As part of their restructuring bid, close-out sales will have a negative effect on
As part of the expansion strategy, the TSC Peavey Industries secured a $155 million competing stores. In the long term there is an
stores in Manitoba were rebranded as Peavey financing package from Gordon Brothers, a opportunity for dealers to add staff and build
Mart in 2017 and the Ontario stores followed retail-focused investment firm from Boston. sales. The Peavey store locations may be a
in 2021. Another part of the expansion The financing package included a revolving new opportunity for dealers.
plans included the acquisition of the Ace credit line of $105 million, a $30 million term It is never good for business when a solid,
Hardware name from Lowe’s-owned RONA loan and a $20 consignment program. The long-time competitor is forced to close. The
in 2020. Peavey maintained the 107 store financing was to support ongoing operations fallout from the Peavey closures may take
Ace Hardware chain, supplying products from and provide a life preserver to Peavey’s months to conclude. We continue to see that
their own distribution centres. They had also struggling operations. Unfortunately, the the Canadian retail landscape is changing.
purchased a Red Deer-based transportation lifeline provided by Gordon Brothers was not Customers are changing, and they are
company, Guy’s Freightways in 2023. Peavey enough to save Peavey Mart from closure. demanding more than ever from Canadian
had been a long-time customer of this “The Canadian retail environment has retailers. Retailers need to work to meet those
company. faced significant disruption over recent years, demands to thrive despite these challenges.
The first external signs that operations and Peavey has not been immune to these

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