‘Business as usual’: Amid parent company bankruptcy, Pet Supplies Plus CEO urges calm
The pair of US companies say operations were not impacted by Franchise Group’s recent bankruptcy filing.
The parent company of Pet Supplies Plus (PSP) and Wag N’ Wash, Franchise Group, has recently filed for Chapter 11 bankruptcy proceedings in a Delaware court. Despite the filing, officials say the pet supply and service stores are operating as usual.
In a prepared statement to GlobalPETS, PSP and Wag N’ Wash CEO Chris Rowland called the bankruptcy “unfortunate” but said PSP “remains strong and well positioned for success today and into the future.”
He also confirmed that PSP locations were not included in the bankruptcy proceedings. “Everything remains business as usual for Pet Supplies Plus and Wag N’ Wash stores, both now and moving forward,” he says.
Rowland pointed out the strong cash flow at the company, which he says is expected to continue.
Recent growth
Rowland shared his outlook in a February interview with GlobalPETS, touting 20% year-on-year growth in PSP’s service business.
With over 700 stores, PSP is the largest pet supplies franchise in the US and the country’s third-largest brick-and-mortar specialist retailer.
Franchise Group owns several other franchise brands in the US, including Vitamin Shoppe. As a result of the bankruptcy, the group is shutting down American Freight, a major discount furniture retailer.
Investors in the group are likely to lose money despite PSP’s strength. B. Riley Financial, which owns nearly one-third of Franchise Group, warned of losses as it delayed its Q3 earnings report. Reuters reported that B. Riley has yet to file its earnings report for the second quarter, which ended on 30 June 2024.
There are many questions about what Franchise Group’s portfolio may look like when it finishes restructuring and exits bankruptcy proceedings, but for now, its pet industry subsidiaries appear to be going strong.
Share this story:
