Peavey Industries General Partner Limited, TSC Stores GP Inc., Guy's Freightways Ltd., and Peavey Industries Limited (collectively, the “Peavey Group”) obtained CCAA protection on January 27, 2025, following financial distress driven by declining consumer demand, inflation, and lingering pandemic effects. The Alberta-based farm goods retailer operates 94 stores across six provinces with approximately 1,900 employees.

Peavey had been in default under its RBC credit agreement throughout 2023 and 2024, with the agreement amended 11 times. In December 2024, 1903 Partners acquired RBC’s position, becoming Peavey’s senior secured creditor, and provided a $105 million revolving credit facility and a $30 million term loan facility. However, poor holiday sales led to defaults on financial covenants, prompting 1903 Partners to demand repayment of $66.4 million in mid-January 2025. Peavey also estimates it owes 820 suppliers approximately $60 million.

The CCAA process aims to close underperforming stores, disclaim leases, liquidate inventory, and sell non-core assets. Gordon Brothers will assist with store closures, while 1903 Partners will act as interim lender.

Legal advisors include Norton Rose Fulbright for Peavey, McCarthy Tétrault for the monitor (FTI), Miller Thomson for 1903 Partners, Cassels for Gordon Brothers, Osler for Stanley Black & Decker (supplier), BDP for Mid-States Distributing (creditor), and Gardiner Roberts for Crombie Property Holdings (landlord).