The pet supplies retail industry has been facing economic challenges due to rising labor and product costs driven by inflation and increasing lease rates. Despite the overall financial strength of the industry, some pet supplies retail operators have been forced to file for bankruptcy protection.
According to the American Pet Products Association’s 2026 State of the Industry Report, sales in the pet industry rose by 3.7% in 2025, reaching $158 billion. Sales are projected to continue to rise to $165 billion in 2026, with a full-year growth expected to be about 4.4%, driven in part by inflation.
However, not all pet supplies retail operations are benefiting from the industry’s sales growth. Recently, Pet Supplies Plus franchisee IKPM Pet Supply LLC, based in Sugar Land, Texas, filed for Chapter 11 bankruptcy protection to reorganize its business affairs. The franchisee listed $100,000 to $500,000 in assets and $1 million to $10 million in liabilities in court papers.
The debtor’s largest creditors include Customers Bank, Ondeck, Karthikeyan Patchamuthu, Chase, and Petronia Holdings, with debts totaling over $1.4 million. The specific reason for the bankruptcy filing was not disclosed, and the Pet Supplies Plus store remains open for business.
In a similar vein, Florida-based Pet Supplies Plus franchisee PSP TS LLC also filed for Chapter 11 bankruptcy protection, seeking to restructure debts. The franchisee listed $100,000 to $500,000 in assets and $1 million to $10 million in liabilities in its petition.
The Pet Supplies Plus chain, founded in 1988 and based in Livonia, Michigan, operates 725 locations in 44 states and offers over 10,000 products from over 400 brands. Despite the recent bankruptcy filings by some franchisees, the chain remains operational.
It is worth noting that the Pet Supplies Plus franchisor has not filed for bankruptcy. The franchisee’s bankruptcy filings came after the chain’s owner, Franchise Group Inc., acquired Pet Supplies Plus for $700 million in March 2021. Franchise Group Inc. itself filed for Chapter 11 protection in 2024, with a restructuring support agreement, but the franchisees did not file for bankruptcy at that time.
Overall, the pet supplies retail industry continues to face economic challenges despite the industry’s overall growth. The recent bankruptcy filings by Pet Supplies Plus franchisees highlight the ongoing financial struggles faced by some operators in the industry.
