Pet Supplies Plus store franchisee files Chapter 11 bankruptcy
The pet industry has shown economic strength after sales rose about 3.7% in 2025, reaching $158 billion, according to the American Pet Products Association's 2026 State of the Industry Report.
Sales are projected to rise to $165 billion in 2026, with full-year growth expected to be about 4.4%, of which 2% is driven by inflation, the report said.
Despite the financial strength in the industry, pet supplies retailers are still having difficulties, forcing certain establishments to file for bankruptcy protection.
Pet store chain franchisee files bankruptcy
Florida-based Pet Supplies Plus franchisee PSP TS LLC filed for Chapter 11 bankruptcy protection, seeking to reorganize its business affairs, according to court papers.
The Holiday, Fla., pet supplies retail franchisee filed its petition in the U.S. Bankruptcy Court for the Middle District of Florida in Tampa on May 12, listing $100,000 to $500,000 in assets and $1 million to $10 million in liabilities, according to PacerMonitor.
The debtor's largest unsecured creditors include Banesco USA, owed over $920,000; Pinacle Bank, owed over $275,000; and American Express, owed over $8,000.
The debtor did not indicate a specific reason for filing for bankruptcy, and the franchisee's only Pet Supplies Plus store remains open.
The Pet Supplies Plus franchisor has not filed for bankruptcy.
The Livonia, Mich.-based pet supplies chain, which was founded in 1988, operates 725 Pet Supplies Plus locations in 44 states, as well as 26 Wag N' Wash full-service grooming and self-wash facilities nationwide.
The pet supplies chain, which has over 10,000 products from over 400 brands, also offers online shopping with same-day delivery and one-hour curbside pickup.
Chain ranked No. 1 Best Customer Service
Forbes, for the third consecutive year, ranked Pet Supplies Plus as the No. 1 pet store for best customer service in February 2026.
The former parent company of the Pet Supplies Plus corporation, Franchise Group Inc., filed for Chapter 11 protection on Nov. 3, 2024, to restructure its business, according to court papers.
The former parent company, however, was not involved in the business operations of Pet Supplies Plus and Wag N' Wash.
Pet Supplies Plus sold in bankruptcy
Franchise Group emerged from bankruptcy on June 6, 2025, after confirmation of its plan of reorganization, which included the sale of Pet Supplies Plus to Fusion Parent LLC.
Pet Supplies Plus and Wag N' Wash currently operate as their own independent entity.
"Even though we were already operating as an independent business, this decision allows us to formally chart our own course," Chris Rowland, CEO of Pet Supplies Plus and Wag N' Wash, said about separating from Franchise Group in a statement at the time.
"The separation empowers us to accelerate our franchise development goals, simplify our operational structure, and ensure we are all working toward a shared goal," Rowland said.
Three Dog Bakery franchisee bankruptcy
A franchisee of specialty pet retailer, Three Dog Bakery LLC, filed for Chapter 11 bankruptcy protection on Jan. 15, 2026, also in the U.S. Bankruptcy Court for the Middle District of Florida.
The franchisee, J.L.E.T. Enterprises, LLC, faced a protracted legal dispute with the franchisor, which had terminated the company's franchise agreement in May 2025, according to documents filed on PacerMonitor.
J.L.E.T. Enterprises faced litigation in the U.S. District Court for the Western District of Missouri involving allegations of trademark infringement and breach of non-compete provisions after attempting to transition to independent operations, TheStreet's Daniel Kline reported.
The debtor filed for bankruptcy to resolve its legal liabilities and debts owed to landlords and legal counsel.
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This story was originally published May 16, 2026 at 9:07 AM.