Pet Supplies Plus franchisee PSP TS LLC files Chapter 11 bankruptcy amid industry growth
The filing highlights diverging fortunes within the pet sector, as the broader market projects $165 billion in sales for 2026 despite individual franchise struggles.
PSP TS LLC, a Florida-based franchisee of the Pet Supplies Plus chain, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Middle District of Florida on May 12. The filing lists assets between $100,000 and $500,000, and liabilities between $1 million and $10 million. Major unsecured creditors include Banesco USA, Pinacle Bank, and American Express. The debtor did not specify a reason for the filing, and its sole store remains open. This event occurs despite the broader pet industry showing economic strength, with sales projected to reach $165 billion in 2026.
The petition was lodged in Tampa, with court documents indicating that the largest unsecured creditor is Banesco USA, which is owed more than $920,000. Pinacle Bank is owed over $275,000, while American Express holds a claim for more than $8,000. The franchisee, based in Holiday, Florida, did not provide a specific rationale for the restructuring, and the single Pet Supplies Plus location continues to operate normally.
The bankruptcy of PSP TS LLC stands in contrast to the wider sector’s performance. According to the American Pet Products Association’s 2026 State of the Industry Report, industry sales rose approximately 3.7% in 2025 to reach $158 billion. Full-year growth for 2026 is projected at about 4.4%, with 2% of that figure attributed to inflation. Despite this macroeconomic resilience, individual retailers continue to face operational pressures that have led to bankruptcy filings.
The franchisor, Pet Supplies Plus, remains unaffected by the franchisee’s financial distress. The Livonia, Michigan-based chain, founded in 1988, operates 725 locations across 44 states and 26 Wag N' Wash facilities nationwide. The brand, which Forbes ranked as the No. 1 pet store for customer service in February 2026, continues to function as an independent entity.
This independence was established in June 2025, when former parent company Franchise Group Inc. emerged from its own Chapter 11 restructuring and sold Pet Supplies Plus to Fusion Parent LLC. Chris Rowland, CEO of Pet Supplies Plus and Wag N' Wash, stated that the separation allowed the business to formally chart its own course and accelerate franchise development. The current filing by PSP TS LLC marks the second recent Chapter 11 case involving a specialty pet retailer franchisee in the Middle District of Florida.
