Wag!, SF-based pet care company, files for bankruptcy

SAN FRANCISCO (KRON) — Wag!, the app-based pet care company that was once reportedly valued at $650 million, has filed for bankruptcy. The company, which was founded in Los Angeles but maintains its headquarters in San Francisco, filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware last week.

In what the company is calling a “comprehensive balance sheet restructuring,” Wag’s primary lender, Retriever, will assume ownership of the reorganized company, following court approval. This will allow Wag! to continue providing its core services.

“This process enables us to move forward with a clear plan and a strong partner who shares our vision for the future,” said Wag! CEO and Chairman, Garrett Smallwood. “Retriever’s ongoing support — along with their long-term investment in our business — will provide the financial and operational flexibility we need to continue serving our customers while positioning our business for sustainable growth and long-term success.”

Wag! has secured financing from Retriever to provide the liquidity it needs to keep its core business offering afloat while it navigates through the courts. According to a press release, Wag! believes that filing Chapter 11 will enable it to “emerge with a strengthened financial foundation and the resources needed to execute on its long-term strategic priorities.”

The bankruptcy and reorganization are subject to approval by the court.