Pet Supplies Plus and Wag N’ Wash break away from former parent company

The retailer Pet Supplies Plus (PSP) and the dog-grooming specialty retailer Wag N’ Wash (WNW) – which the former acquired in 2022 – formally separated from their parent company, Franchise Group, on 8 December 2025.

Now, the retailers form an independent entity. “PSP and WNW are owned by a group of sophisticated investors, made up of large banks and private equity firms,” the brands’ Chief Financial Officer, Dan McNamara, tells GlobalPETS. 

Securitization strategy

To achieve independence, the brands resorted to an inaugural whole-business securitization (WBS) financing, which “allows for more favorable interest rates since the debt is collateralized by the different revenue streams of the company,” the CFO explains. 

According to PSP, Guggenheim Securities was the sole structuring advisor, while Paul, Weiss, Rifkind, Wharton & Garrison served as legal advisor.

Also called corporate securitization, WBS is a way to raise capital using steady income as collateral. 

McNamara says that “most large franchisors use this type of debt facility, and we believe it is best suited to Pet Supplies Plus and Wag N’ Wash as franchise-focused businesses.” According to Fitch Ratings, food franchisors have been using this financial instrument “for decades.” 

The transition follows the financial restructuring process of Franchise Group, completed in June 2025, and was aimed at providing the brands with operational autonomy. 

“The timing was strategic as the Franchise Group had no involvement with Pet Supplies Plus and Wag N’ Wash after emerging from Chapter 11 bankruptcy. Formalizing the arrangement was a proactive step to align the legal structure with operational reality,” McNamara explains. 

Future plans

According to the brands, both Pet Supplies Plus and Wag N’ Wash have independent boards and ownership, and no operational impact is expected on franchise or corporate locations. 

Franchises will continue to focus on opening new locations and investing in in-store experiences, the CFO says, without disclosing numbers or dates. 

“We continue to sell Wag N’ Wash stores and look forward to adding more franchisees into the system and opening new locations in the near future,” he adds.

Bankruptcy 

In November 2024, Franchise Group filed for Chapter 11 bankruptcy proceedings in the US Bankruptcy Court in the District of Delaware. 

At the time, 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.”

In June 2025, Franchise Group announced that the court had approved its Plan of Reorganization, and it had “emerged from Chapter 11 as a streamlined company with a significantly deleveraged capital structure and enhanced liquidity.” 

At the time, the company stated that Pet Supplies Plus would be owned by a newly created firm called Fusion Parent, led by a reconstituted Board.

Company background 

PSP is a Michigan-headquartered franchise retailer with over 725 locations across almost all of the US, selling pet food, goods and services. According to the company, its first franchise opened in 1989. 

GlobalPETS learned that the company has awarded 30 agreements this year and is projected to open more than 20 stores in 2026.

In the past 3 years, the locations increased roughly 20%, from 600 locations in 2022, and expanded from 39 to 48 US states. 

In that year, PSP bought Wag N’ Wash Natural Pet Food & Grooming, which provides grooming, self-wash facilities, food and toys. Since the transaction, WNW has expanded from 15 to 26 locations nationwide.

The acquisition enabled existing franchise owners to open stores under any of the company’s brands.