A social media post says PetSmart is going bankrupt. A friend mentions their local store is closing. So is the whole chain finished? Not exactly — and understanding the difference matters if you’re a customer, employee, or just trying to separate fact from noise.
This article covers what’s actually happening with PetSmart right now: the store closures, the financial picture, how it compares to competitors, and what customers and employees should know.
PetSmart Is Not Going Out of Business — But It Is Closing Some Stores
Let’s answer the main question directly: as of 2024–2025, there is no credible report of PetSmart filing for bankruptcy or planning to shut down all its locations.
PetSmart operates nearly 1,700 stores across the U.S., Canada, and Puerto Rico. It’s still actively selling products, running grooming and training services, hosting adoption events, and operating vet clinics inside its stores.
What is happening is that PetSmart appears to be closing a limited number of underperforming locations. A 2024 retail roundup from iSoldMyHouse.com estimated around 48 stores are being closed. That figure comes from a secondary source — not an official PetSmart announcement — so treat it as an estimate, not a confirmed corporate number.
Even if the figure is accurate, closing 48 stores out of roughly 1,700 is less than 3% of its total footprint. That’s not a collapse. That’s routine store rationalization — cutting locations that aren’t pulling their weight.
Compare that to what a real “going out of business” scenario looks like. When the pet and garden chain Smithland shut down, it announced that all locations would close by a specific date, with liquidation sales following. That’s the definition of going out of business. PetSmart is not doing that.
How PetSmart Got Here — Private Equity, Debt, and the Chewy Deal
To understand why “PetSmart is struggling” headlines keep appearing, you need to know a bit of financial history.
PetSmart was founded in 1986 — originally as PetFood Warehouse — and grew into one of the largest specialty pet retailers in North America. It was publicly traded on NASDAQ for years.
In 2014–2015, a BC Partners-led investment group took PetSmart private in a leveraged buyout valued at around $8.7 billion. Once the deal closed in early 2015, PetSmart disappeared from NASDAQ. Because it’s now a private company, it has no obligation to publish detailed financial results. That lack of public information creates a vacuum — and speculation tends to fill those gaps.
Then in 2017, PetSmart acquired Chewy.com for approximately $3.35 billion. At the time, it was a record-setting e-commerce deal. Chewy was growing fast, and the acquisition made strategic sense for capturing online pet supply sales. But it also added significant debt to a balance sheet that was already carrying leverage from the buyout.
Chewy was later spun off as its own public company. The debt from the original deal, however, remained part of PetSmart’s cost structure. That debt load is the main reason you’ll see words like “struggling” attached to PetSmart in financial coverage — not because the business is falling apart, but because carrying heavy debt limits flexibility and makes cost-cutting measures more likely.
What PetSmart’s Finances Actually Look Like Right Now
Here’s the honest picture, based on available analyst estimates — not audited corporate financials, since PetSmart is privately held and doesn’t publish those publicly.
PetSmart is estimated to generate around $9–10 billion in annual revenue, according to an investment analysis from MMC Global Investments. That puts it among the largest specialty retail chains in North America by revenue.
CoStar, a major commercial real estate data firm, assigns PetSmart a tenant credit rating of A-81, categorized as Very Low Risk. In practical terms, that means landlords and real estate investors still view PetSmart as a reliable tenant. They’re not worried about it walking away from leases.
S&P rates PetSmart’s credit at B+. That’s below investment grade, which reflects the debt load. But B+ is not a distressed rating — it’s not signaling imminent failure. It’s saying the company carries meaningful debt and has less financial cushion than an investment-grade business.
Put it all together: PetSmart is a large, active business under financial pressure. It is not a business on the edge of collapse.
PetSmart vs. Petco — Two Chains in Very Different Positions
It helps to compare PetSmart to its closest competitor. Petco is publicly traded, so its numbers are easier to examine directly.
According to the same MMC Global Investments analysis, Petco reported approximately $6.1 billion in revenue for fiscal year ending February 2025, alongside a GAAP net loss of $101.8 million. Its stock price fell to around $2.45 in early 2026, and it’s carrying roughly $1.3 billion in debt while also closing or downsizing locations.
PetSmart, by contrast, has a higher estimated revenue figure and a stronger tenant credit rating. That doesn’t mean PetSmart has no problems — it does. But the two companies are not in the same position. If you’re reading general headlines about “pet retailers struggling,” Petco’s situation is significantly more visible and arguably more urgent than PetSmart’s.
The broader retail environment is also worth noting. Online competitors like Chewy, Amazon, Walmart, and Target all sell pet supplies. Margins across pet retail are under pressure. But pet spending has historically held up well even during economic downturns — people keep buying food and care for their animals. That resilience benefits specialty chains like PetSmart.
Why PetSmart Is More Than Just a Pet Store
One factor that helps PetSmart is its service-heavy model. A large portion of its business comes from things you can’t get from Amazon: grooming appointments, dog training classes, pet boarding at PetsHotel locations, and in-store veterinary clinics operated by third-party vet practices.
These services require a physical location. They drive consistent foot traffic. And they create repeat customers who come back regularly, not just when they need a bag of kibble.
PetSmart also partners with animal welfare organizations to host in-store adoption events. That builds goodwill and brings in people who aren’t shopping purely on price. It’s a real advantage over pure e-commerce competitors.
What This Means for Customers and Employees
If your local PetSmart is one of the stores being closed, here’s what that typically means in practice:
- Gift cards and loyalty points remain valid chain-wide as long as the company continues operating normally. There is no current announcement suggesting otherwise.
- Grooming, training, and vet appointments at closing stores will need to be transferred to another nearby location.
- Employees at closing stores are sometimes offered transfers to nearby locations or severance, depending on company policy and the local job market.
- Customers at affected stores may need to travel further or consider alternatives — Petco, local pet shops, or online retailers.
For the vast majority of customers, PetSmart continues to operate normally. The website, app, online ordering, and services at most locations are running as usual.
How to Check If Your Specific Store Is Closing
Don’t rely on social media posts or clickbait roundup articles. Here’s what actually works:
- Go to petsmart.com and use the store locator. Check hours and listed services for your location.
- Search your local news. If a specific store is closing, local business reporters usually cover it.
- Look for official language: “filing for Chapter 11,” “liquidation sale,” or “all stores closing by [date].” Those are the red flags. A store quietly going dark is different from a corporate bankruptcy.
Why These Rumors Spread So Easily
Retail has had a rough few years. Rite Aid filed for bankruptcy. Bed Bath & Beyond liquidated. Dollar store chains have closed hundreds of locations. When this many retailers are struggling, people start assuming every chain is next.
Articles that bundle together dozens of retailers — some filing Chapter 11, some just closing a handful of stores — blur important distinctions. When readers see “PetSmart” in a list alongside chains that actually liquidated, the association sticks.
That’s how a story about 48 store closures becomes “PetSmart is going out of business” by the time it reaches your Facebook feed.
For straightforward business analysis like this, resources such as Young Business Mag focus on cutting through that kind of noise with grounded, factual reporting.
What to Watch Going Forward
PetSmart’s biggest risks going forward are real but not immediate. The debt load from its leveraged buyout and the Chewy acquisition limits how much financial flexibility it has. If operating costs rise significantly or revenue dips, those pressures become more serious.
The factors worth monitoring include any formal bankruptcy filings (none currently), large-scale closure announcements beyond normal store rationalization, and any changes from credit rating agencies. If S&P were to downgrade PetSmart further into distressed territory, that would be worth paying attention to.
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