Wag! Group Co., the publicly traded pet care services marketplace, has filed for Chapter 11 bankruptcy protection in Delaware as part of a prepackaged restructuring plan that would hand control of the company to its secured lender. The company, which operates a platform connecting pet owners with caregivers for services such as dog walking and pet sitting, has been facing significant financial challenges, having accumulated substantial losses over the past several years.
The prepackaged plan, which has already secured support from the company's secured lender, Retriever LLC, would convert this debt into 100% ownership of the reorganized company, effectively wiping out existing shareholders.
"The Debtors believe that the Plan meets the feasibility requirements set forth in section 1129(a)(11) of the Bankruptcy Code, as confirmation of the Plan is not likely to be followed by a liquidation or the need for further financial reorganization of the Debtors or any successor under the Plan," the filing states.
The bankruptcy filing follows nearly a year of unsuccessful efforts to find a buyer or refinancing options. The company's disclosure statement reveals that its board, with assistance from BofA Securities, contacted sixteen different potential buyers between September 2024 and May 2025. While seven parties signed non-disclosure agreements and four held management meetings, the three non-binding indications of interest received ultimately did not lead to transactions. A separate financing process led by Arc Capital Markets, which reached out to twenty-six potential financing partners, similarly failed to produce viable alternatives.
Wag!'s financial troubles have been mounting for years. The company reported net losses of $17.6 million for 2024, $13.3 million for 2023, and $38.6 million for 2022. Revenue for 2024 was approximately $70.5 million, representing a 16% decrease from the previous year. The company's stock has been trading below $1.00 since August 2024 and has not closed above $0.20 since March 2025, leading to two delisting notices from NASDAQ.
Just days before the bankruptcy filing, on July 14, 2025, the company sold its prescription management and digital e-scribing software assets to MWI Veterinary Supply Co. for $5 million. Approximately $3.5 million of these proceeds were used to pay down existing debt obligations.
Under the proposed reorganization plan, Retriever LLC, which acquired Wag!'s debt from original lender Blue Torch Finance in April 2025, will receive 100% of the new common stock of the reorganized company and $5 million in new notes. The plan also provides for a debtor-in-possession financing facility of up to $6.5 million to fund the company through the bankruptcy process.
The restructuring plan divides creditors into several classes. While the secured lender will take ownership of the company, general unsecured creditors are designated as "unimpaired" and will be paid in full. Administrative claims, priority tax claims, and other secured claims would also be paid in full. However, the "Non-Go Forward Claim" (a disputed claim from Marketplace Operations, Inc.) and equity interests in Wag! will receive no recovery.
Founded in 2014, Wag! went public in August 2022 through a SPAC merger with CHW Acquisition Corporation in a deal that valued the company at $350 million. The platform currently connects over 1 million pet parents with more than 500,000 independent pet caregivers nationwide. Beyond its original dog walking service, Wag! has expanded to offer pet insurance comparison services, wellness plans, pet food and treat recommendations, and pet apparel through acquisitions including Compare Pet Insurance Services, Maxbone, and Dog Food Advisor.
The company expects the bankruptcy process to be completed efficiently, with an anticipated effective date by September 1, 2025. The court will need to approve the disclosure statement and confirm the reorganization plan at a combined hearing expected within 42 days of the filing.
Young Conaway Stargatt & Taylor, LLP is serving as proposed legal counsel to the Debtors, with Portage Point Partners as restructuring advisors and Epiq Corporate Restructuring, LLC as claims agent.
A liquidation analysis included in the filing indicates that creditors would fare worse in a Chapter 7 liquidation than under the proposed plan. The company projects that after restructuring, it could achieve positive adjusted EBITDA by 2026, growing to approximately $5.1 million by 2029, though it would still carry significant debt on its balance sheet.
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