The long-tail effects of the pandemic are still surfacing, with pet care tech company Wag! Group Co. is becoming the latest to file for bankruptcy. Once valued at $650 million, Wag! Group Co. is now seeking protection under Chapter 11. The company plans to restructure its operations, reduce debt, and transfer ownership as part of its reorganization strategy.
Highlights
- Wag! Group Co. filed for a pre-packaged Chapter 11 bankruptcy process on July 21, 2025.
- The petition was filed at the Delaware Bankruptcy Court.
- The recovery plans have been made and include an ownership transfer.
Wag! Group Co. Filed for Chapter 11 Bankruptcy
Wag! Group Co. has built a reputation as a major player in the pet care tech industry. Pioneering on-demand dog walking in 2015 and operating the largest pet insurance comparison marketplace nationwide, the company has grown exponentially over the years. But like many tech-forward service providers, the company’s momentum stalled during the pandemic.
On July 21, Wag! Group Co. shared a press release announcing the filing of Chapter 11 bankruptcy. The company will pursue a pre-packaged Chapter 11 process in the U.S. Bankruptcy Court for the District of Delaware. Through the plan, the company expects to emerge from Chapter 11 within 40 days.
With Retriever LLC as its primary secured lender and sole voting class on board, the company expects to fast-track the reorganization. The plan proposes a clear path to reduce debts and position the business for long-term success. Under this plan, the ownership of the reorganized business will be assumed by Retriever.
Plans to Transfer Ownership
Retriever will assume ownership of the company under the terms of the pre-packaged plan of reorganization. This private company has been supporting pet-related businesses over the years. Retriever has long backed Wag!, and CEO Garrett Smallwood expressed confidence in their shared long-term vision.
“This process enables us to move forward with a clear plan and a strong partner who shares our vision for the future,” said Garrett Smallwood, CEO and Chairman of Wag!.
After the plan is approved by the court, Retriever will assume ownership of Wag!. As part of the restructuring, public shareholders may lose their stakes in the tech company. All existing equity will be wiped out in the restructuring. Wag! will rebuild itself with reduced debts and new financing under private ownership.
The plan is designed in a way that will accelerate the reorganization plan and bring Wag! out of Chapter 11 within 40 days. Under Retriever LLC, the company believes it will be well-positioned to thrive in the long term.
Operations Continue Amidst Case Proceedings
The press release assures customers that operations across business segments will continue without interruption during this time. To meet business needs during the court proceedings, Wag! has confirmed a commitment for debtor-in-possession financing from Retriever.
The funding ensures business continuity throughout the court-supervised process. Wag! expects to emerge from Chapter 11 within weeks and reposition the brand for long-term growth under new ownership.
