Overview of the Filing

On July 21, 2025, Wag! Group Co. and six affiliated entities filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. The San Francisco-based pet care technology platform, once valued at $650 million, pursued a pre-packaged restructuring plan aimed at eliminating approximately $16.3 million in secured debt and transitioning to private ownership under Retriever LLC, its primary secured lender.

The bankruptcy filing marks a dramatic reversal for the company that pioneered on-demand dog walking services during the 2010s gig economy boom. According to court documents and financial disclosures, the debtors reported $29.4 million in assets against $29.9 million in liabilities as of December 31, 2024.

The Debtors and Case Administration

The Chapter 11 cases involve seven affiliated companies under Case No. 25-11358 (TMH), with Judge Thomas M. Horan presiding. The debtors include:

The cases have been jointly administered for procedural purposes, with the company's headquarters located at 2261 Market Street, Suite 86056, San Francisco, California 94114. Young Conaway Stargatt & Taylor, LLP serves as proposed bankruptcy counsel, while Portage Point Partners acts as the restructuring advisor.

Financial Deterioration and Path to Bankruptcy

According to Chief Financial Officer Alec Davidian's first day declaration, Wag!'s financial troubles intensified following the COVID-19 pandemic. Monthly revenues declined rapidly after March 2020, leading to cumulative losses of $69.5 million from 2022 through 2024.

The company's public market journey proved particularly challenging. After going public in August 2022 through a de-SPAC transaction at a $350 million valuation—already far below initial expectations—the stock price collapsed. By the time of the bankruptcy filing, shares were trading at approximately 12 cents, representing a market capitalization of less than $6 million.

A critical trigger for the bankruptcy came when Wag! breached minimum liquidity covenants in its 2022 debt agreements. With debt obligations maturing in August 2025 and unsuccessful attempts to secure third-party financing or a sale, the company faced what Davidian described as a 'dire liquidity crisis.'

The Pre-Packaged Restructuring Plan

Wag!'s pre-packaged plan that has already received approval from Retriever LLC represents a streamlined approach to bankruptcy. As reported by Nasdaq, Retriever is the sole voting class under the plan. Key elements include:

Retriever has also committed to providing debtor-in-possession (DIP) financing to maintain liquidity during the bankruptcy process, along with exit financing to support the company's emergence from Chapter 11.

Early Court Approvals and First Day Motions

On July 22, 2025, Judge Horan issued an interim order authorizing the payment of certain prepetition taxes and fees. The order permits Wag! to pay up to $71,000 in critical tax obligations to maintain good standing with various governmental authorities during the restructuring process.

The court scheduled a final hearing on this relief for August 8, 2025 at 1:00 p.m. ET. The order specifically authorizes banks to honor and process checks and electronic transfers for these approved payments, ensuring continuity of essential governmental obligations.

Business Operations During Bankruptcy

CEO and Chairman Garrett Smallwood emphasized that all business segments will continue operating without interruption throughout the Chapter 11 process. According to the company's restructuring announcement, the services include:

The company stressed that its over 400,000 active users and vast network of gig workers should experience no service disruptions during the restructuring.^{SEC 10-K} As reported by KRON4, Wag! has secured DIP financing from Retriever to maintain operations throughout the bankruptcy process.

Market Impact and Delisting

The bankruptcy filing triggered immediate consequences in the public markets. On July 23, 2025, just two days after the Chapter 11 filing, Nasdaq issued a delisting notice citing multiple listing standard violations, including failure to maintain the minimum $1.00 bid price and required $50 million market capitalization.^{SEC 8-KNasdaq Rules}

Trading was suspended on July 30, 2025, with the stock transitioning to the Pink Open Market (the 'pink sheets'). According to market analysis, the company's stock fell 35% following the delisting announcement and had lost over 91% of its value in the year leading up to bankruptcy.

Strategic Challenges and Industry Context

Wag!'s bankruptcy reflects broader challenges facing gig economy platforms, particularly those in commoditized service markets. As industry observers on Slashdot noted, several structural issues plagued the company:

Looking Ahead: Retriever's Vision

Under Retriever LLC's ownership, Wag! aims to emerge with what Smallwood described as a 'strengthened financial foundation' and resources to execute long-term strategic priorities. The transition to private ownership may provide operational flexibility away from quarterly earnings pressures.

However, questions remain about the company's ability to address fundamental business model challenges. The pet care industry continues to grow, with Americans spending over $100 billion annually on their pets, but Wag! must prove it can capture value in this market while competing against both traditional service providers and emerging digital platforms.

Conclusion

Wag!'s Chapter 11 filing represents both an ending and a potential new beginning for the once high-flying pet tech startup. While the bankruptcy eliminates value for existing shareholders and marks a sobering conclusion to its public company journey, the pre-packaged restructuring offers a relatively swift path to financial stability under new ownership.

The case will be closely watched as a bellwether for other gig economy platforms facing similar pressures. Whether Retriever can successfully reposition Wag! for sustainable growth in the competitive pet care market remains to be seen, but the company's vast network of users and caregivers provides a foundation to build upon as it emerges from bankruptcy protection.

Additional information about the Chapter 11 proceedings, including court filings and updates, is available at the case website: https://dm.epiq11.com/WagGroupCo