Pet Supplies Plus Franchisee Files Chapter 11 Bankruptcy: What It Means for Customers

A PetSmart rival that was ranked number one in customer service has collapsed into Chapter 11 bankruptcy. The bankruptcy filing comes from PSP TS LLC, a franchisee of Pet Supplies Plus, which filed for Chapter 11 bankruptcy protection on May 12 with the intention to reorganize.

Key Details

• The franchisee cited between $1 million and $10 million in debt and owes large sums to creditors, including American Express (over $8,000), Pinnacle Bank ($275,000), and Banesco USA ($920,000).
• The sole Pet Supplies Plus store in Holiday, Florida (about 33 miles northwest of Tampa) remains operational.
• Pet Supplies Plus itself has not filed for bankruptcy—only the Florida-based franchisee PSP TS LLC.

Background

Pet Supplies Plus, founded in 1988, still operates over 700 stores in 44 states and 26 Wag N’ Wash grooming facilities. Forbes ranked the company as the number one pet store for customer service for the third year in a row in February. However, its former parent company, Franchise Group Inc, filed for bankruptcy in November 2024 and sold Pet Supplies Plus to Fusion Parent LLC in June 2025.

What This Means for Customers

• The bankruptcy is limited to one franchisee, so most Pet Supplies Plus locations are unaffected.
• The company continues to operate and serve customers, with a focus on reorganization.
• A new Colorado law effective January 1, 2027, will ban pet stores from selling dogs and cats, with fines of up to $1,000 per animal. This impacts Pet Supplies Plus, PetSmart, and others.

How Bankruptcy Works

Bankruptcy is a legal process that helps companies eliminate debt they can't repay. Chapter 11 allows businesses to restructure and remain open, while Chapter 7 sells all assets and closes the business. Chapter 15 involves international collaboration.

For now, Pet Supplies Plus customers can continue shopping as usual, but the industry faces challenges from financial pressures and new regulations.