Peavey Industries General Partner Limited, TSC Stores GP Inc., Guy's Freightways Ltd., and Peavey Industries Limited, CCAA

Peavey Industries General Partner Limited, TSC Stores GP Inc., Guy's Freightways Ltd., and Peavey Industries Limited (collectively, the “Peavey Group”), a Red Deer, Alberta-headquartered farm goods retailer, obtained CCAA protection on January 27.

The Peavey Group operates across 94 store locations in six provinces and employs approximately 1,900 people.

Peavey’s performance has suffered due to reduced consumer demand for discretionary goods, inflationary pressures, and the lingering effects of the COVID-19 pandemic.

The Group’s credit agreement with RBC as agent was in default throughout 2023 and 2024 and amended 11 times.

In late December, 1903 Partners paid down the RBC loan and became the new senior secured creditor, providing a $105 million revolving credit facility and a $30 million term loan facility to Peavey. Poor revenue performance and difficulty obtaining inventory from suppliers persisted throughout the holiday season, resulting in Peavey quickly defaulting on its financial covenants to 1903 Partners.

In mid-January 2025, 1903 as agent demanded repayment of approximately $66.4 million. In addition, Peavey estimates that it owes 820 suppliers approximately $60 million.

The purpose of the CCAA proceedings is to close under-performing stores, sell or disclaim store leases, liquidate inventory and sell non-core assets. Gordon Brothers will be assisting Peavey with its store closures, and 1903 Partners will act as interim lender under the existing loan facilities.

FTI is the monitor.

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