Challenges Persist for Pet Retailers Despite Industry Growth
While the broader pet industry continues to demonstrate resilience, some individual retail operators are struggling to navigate the current economic climate. Despite overall sector growth, rising operational costs—including increased labor expenses, higher product prices driven by inflation, and escalating lease rates—have created significant financial pressure for certain businesses.
According to the American Pet Products Association’s 2026 State of the Industry Report, the pet sector remains robust. Sales reached $158 billion in 2025, a 3.7% increase, with projections indicating further growth to $165 billion in 2026. However, these positive industry-wide trends mask the difficulties faced by specific franchisees.
Recent Chapter 11 Filings
Two separate Pet Supplies Plus franchisees have recently turned to Chapter 11 bankruptcy protection to reorganize their financial affairs. It is important to note that these filings involve individual franchisee entities, and the Pet Supplies Plus corporate brand has not filed for bankruptcy.
- IKPM Pet Supply LLC: Based in Sugar Land, Texas, this franchisee filed for bankruptcy on May 22, 2026, in the U.S. Bankruptcy Court for the Southern District of Texas. Court documents indicate the business holds between $100,000 and $500,000 in assets against $1 million to $10 million in liabilities.
- PSP TS LLC: Located in Holiday, Florida, this operator filed its petition on May 12, 2026, in the U.S. Bankruptcy Court for the Middle District of Florida. Like the Texas entity, it reported assets in the $100,000 to $500,000 range and liabilities between $1 million and $10 million.
In both instances, the stores remain open for business, and the operators have not cited a specific, singular reason for the filings. The debt profile for the Texas-based IKPM Pet Supply LLC is significant, with total reported debt exceeding $1.4 million. Major creditors include Customers Bank, Ondeck, and Chase.
Context of the Pet Supplies Plus Brand
The Pet Supplies Plus chain, headquartered in Livonia, Michigan, has been a fixture in the retail landscape since its founding in 1988. The company currently operates 725 locations across 44 states, alongside 26 Wag N’ Wash grooming and self-wash facilities. The brand offers an extensive catalog of over 10,000 products from more than 400 brands.
The brand has seen significant corporate shifts in recent years. In 2021, Franchise Group Inc. acquired Pet Supplies Plus for $700 million. By November 2024, Franchise Group itself filed for Chapter 11 protection, during which it divested its Pet Supplies Plus stores. While the corporate entity underwent restructuring, individual franchisees like those in Texas and Florida remained separate legal entities.
