"We notified the Padres yesterday that based on our last offer not being accepted, we were out of it," Wren said.
The Braves were set to send shortstop Yunel Escobar, pitcher Charlie Morton, reliever Blaine Boyer and Class A outfielder Gorkys Hernandez to the Padres for Peavy, who would have had to waive his no-trade clause.
The Braves felt they were moving toward a deal, according to sources, and on Wednesday believed they were going to obtain the pitcher they had been attempting to acquire since October.
But then something changed, and in Wren's conversations with the Padres it became apparent that a deal was not as close the Braves were thinking. The Atlanta GM declined comment on what explanation the Padres gave him for not accepting the deal.
"It just didn't work," Wren said.
The Braves became perplexed over the past six weeks by the Padres' handling of the negotiations, sources with knowledge of the talks say, and still don't know for sure why San Diego sent such conflicting signals to them this week.
The Braves believe that they were assuming significant risk in the deal not only because of the package of players they were willing to deal, but also because of Peavy's history of injuries.
"We were never that comfortable with the players we were talking about because we're a club that likes to build from within," Wren said. "And as the deal evolved, it was going to impact too many of those players."
Despite periodic trepidation as negotiatons were moving forward, though, the Braves ultimately were willing to part with some prospects they viewed as key -- except for prospect Tommy Hanson.
Even at that, they still feel that their offer for Peavy surpassed any others the Padres have received.
So now the Braves will take their search for two starting pitchers elsewhere. Wren said that they have a couple of trade possibilities working, plus they will dive into the free agent market.
Aside from CC Sabathia, who they view as too expensive, the Braves figure to be involved in anybody and everybody on the free agent market. They've already believed to have touched base with A.J. Burnett, and figure to do the same with Derek Lowe and Ryan Dempster, among others.
"Jake is a player who would have fit into our club very well," Wren said. "But it was a very rich deal, and at the end of the day we just didn't feel like it made sense for our organization to keep talking."
Of course, the offseason is filled with posturing as clubs seek to make deals -- both in the trade and free-agent markets -- and everybody has an agenda and wants their angle out there.
Could this be a case of the Braves doing the same? If the Padres were to call back before Atlanta finishes its pitching plans for the winter, could something still get done?
"We're trying to improve our club," Wren said. "I'm never going to close the door to anything. We have no active discussions going on. We're actively pursuing other things.
"Would I take a call? Yes. But that's not our focus."
The Chicago Cubs, also searching for pitching, are believed to still be interested. However, Towers told the San Diego Union-Tribune on Friday that the club may turn to the Los Angeles Angels and New York Yankees.