Peavey Mart seeks creditor protection, local store to close

The company that runs 90 Peavey Mart locations across the country is seeking creditor protection and closing all its stores, including Tillsonburg. (Jeff Helsdon Photo)

Jeff Helsdon, Editor

The Tillsonburg Peavey Mart locations will be among the dozens that close as the company seeks creditor protection.

The initial announcement from the company suggested it was only 22 Peavey Mart stores in Ontario and Nova Scotia that would close, and the Simcoe and Tillsonburg stores weren’t on the list. However, a follow-up announcement said the company would complete a full wind down of all 90 Peavey Mart stores and six MainStreet Hardware stores across the country.

“We are sure that it will affect some farmers more than others,” said Norfolk Federation of Agriculture president Tyler Townsend. “It's really unfortunate that this has happened.”

Oxford County Federation of Agriculture (OCFA) president Joe Wilson lamented about the end of a relationship with Peavey Mart and the Ontario Federation of Agriculture. Part of this was a discount members received at the store.

“Although rural communities and our members will be impacted by the loss of a retailer specializing in rural and farm products, the OCFA would like to remind everyone to look to local retailers in their area,” he said. “Many local stores provide essential items that farmers rely on to maintain their operations. Shopping locally for these goods fosters community relationships and contributes to the economic growth and sustainability of their communities.”

He gave examples of Parion Animal Nutrition in Hickson, Ingersoll Country Mills, Norwich Country Mills and Corner Farm Market in Woodstock.

Delhi-area cattle and crop farmer Larry Chanda found Peavey Mart had many things farmers needed that weren’t available elsewhere.

“With cattle, Peavey Mart would stock fencing supplies or the odd medication you could get over the counter that you didn’t need a prescription for,” he said. “They just seemed to have a real variety of things you wouldn’t pick up at a different store.”

There are options for former Peavey Mart shoppers for some farm supplies in Norfolk, but they might have to drive further for other items, and to multiple retailers. Doerksen Country Store in Port Rowan carries livestock and pet feed, fencing supplies, automotive lubricants and country home and garden items. Simcoe’s Golden Belt Feeds carries more than just pet food, having livestock feed, and some smaller items for livestock.

“I really can't say at this point how many farmers it will affect or how badly it will affect the farmers that heavily rely on it, but in saying that, maybe it creates opportunity for something else to take its place,” Townsend said.

The implications in Tillsonburg may go further than just the loss of a shopping option.

“As a former farmer, Peavy Mart represented that go to staple store for local agriculture,” said Mayor Deb Gilvesy. “Not only is there a loss of jobs, but also a loss of economic spin-off as it drew the surrounding farmers into our community.”

Peavey details

It’s not known yet the closing date of the Simcoe and Tillsonburg stores, and Peavey is saying little except through a press release.

“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 announcement suggested overall challenges facing the Canadian retail industry were among the factors that led to the decision to seek creditor protection. Those include record low consumer confidence, inflationary pressures, rising operating costs, ongoing supply disruptions and a difficult regulatory environment.

“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 announcement said.

Locally, the locations were operated as TSC stores until 2021 when they moved under the Peavey Mart banner. Peavey Mart acquired the London-based TSC Store brand in 2017, spending the next four years converting the stores to Peavey Marts.

Peavey Mart began in 1967 as a “chain of ‘super farm markets’ whose first location opened in Dawson Creek, B.C.,” according to the company’s website. In 1975 it became known as Peavey Mart and was a subsidiary of Minneapolis-based Peavey Company. Nine years later it returned to full Canadian ownership, which it maintained to the present day.

- With files from Luke Edwards