Economic challenges, such as rising labor and product costs driven by inflation and increasing lease rates, have impacted pet supplies retail operators, forcing several to file for bankruptcy protection, despite financial strength in the industry.
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 all of that good economic news, not every pet supplies retail operation is enjoying the financial benefits of the industry’s sales growth.
Some pet supply retailers have needed to file for Chapter 11 bankruptcy to reorganize their businesses.
Pet Supplies Plus franchisee files
Texas-based Pet Supplies Plus franchisee IKPM Pet Supply LLC filed for Chapter 11 bankruptcy protection, seeking to reorganize its business affairs, according to PacerMonitor.
The Sugar Land, Texas, pet supplies retail franchisee submitted its petition in the U.S. Bankruptcy Court for the Southern District of Texas in Houston on May 22, listing $100,000 to $500,000 in assets and $1 million to $10 million in liabilities, according to court papers.
Debtor reports more than $1.4 million in debt
The debtor’s largest creditors include Customers Bank, owed over $1.07 million; Ondeck, owed over $127,000; Karthikeyan Patchamuthu, owed $126,000; Chase, owed over $107,000; and Petronia Holdings, owed over $28,000, according to its petition.
The debtor has not given a specific reason for filing for bankruptcy, and the franchisee’s Pet Supplies Plus store remains open.
The Pet Supplies Plus franchisor has not filed for bankruptcy.
Florida franchisee also files bankruptcy
IKPM Pet Supply’s bankruptcy filing came 10 days after Florida-based Pet Supplies Plus franchisee PSP TS LLC filed for bankruptcy protection, seeking to restructure debts, according to PacerMonitor.
The Holiday, Fla.-based pet supplies retail franchisee submitted its Chapter 11 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.
PSP TS LLC also did not indicate a specific reason for filing for bankruptcy, and the franchisee’s only Pet Supplies Plus store remains open.
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Chain has over 700 U.S. locations
The Livonia, Mich.-based pet supplies chain was founded in 1988 and 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 has more than 10,000 products from over 400 brands and also offers online shopping with same-day delivery and one-hour curbside pickup.
The owners of the Sugar Land, Texas, store reportedly entered into its franchise agreement in April 2021.
The agreement was signed about a month after the giant retail chain owner Franchise Group Inc. purchased Pet Supplies Plus from Sentinel Capital Partners for $700 million in March 2021.
Franchise Group filed for Chapter 11 protection on Nov. 3, 2024, with a restructuring support agreement, and divested its Pet Supplies Plus stores in bankruptcy. The Sugar Land store franchisee and other franchisees did not file for bankruptcy at that time.
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This story was originally published by TheStreet on May 23, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.