At one point, it seemed like Wag! was unstoppable.
The California-based tech company became a favorite among pet owners — even celebrities like Mariah Carey and Kendall Jenner — thanks to its app-based services for dog walking, pet sitting, and vet care.
Valued at a whopping $650 million during its peak, Wag! was one of the golden children of the on-demand tech boom in the 2010s.
But that era is clearly over.
Wag! Collapses Under Debt and COVID Aftershocks
Wag! has officially filed for Chapter 11 bankruptcy in Delaware, marking a dramatic fall for the once-hyped pet services startup.
As of now, the company’s value has shriveled to under $6 million.
Despite filing for bankruptcy on July 21, Wag! says it will keep its core services — including dog walking, pet insurance, and its veterinary telehealth offerings — running throughout the restructuring process.
However, the company is set to be delisted from the stock market and could be taken private by one of its main creditors, a firm named Retriever.
Pandemic Disruption and Poor Financial Health
The company’s Chief Financial Officer, Alec Davidian, explained in court documents that the COVID-19 pandemic was a major turning point.
With people stuck at home during lockdowns, fewer folks needed dog walkers.
“Monthly revenues declined rapidly after March 2020,” Davidian noted.
Between 2022 and 2024 alone, Wag! racked up a staggering $69.5 million in losses.
A Costly Loan and a Cash Flow Crisis
But COVID wasn’t the only blow. In 2022, Wag! took out a loan from Retriever that required the company to keep a specific cash reserve.
Earlier this year, Wag! fell short of that reserve and couldn’t find any new investors to bail them out.
With major debt payments looming in August and no fresh cash in sight, Wag! was facing what it called “a dire liquidity crisis.”
The only option left was bankruptcy protection.
A Hopeful Future Through Restructuring?
If its restructuring plan is approved by a judge, Wag! will wipe out its 2022 debt to Retriever.
Davidian stated in court that the company hopes to emerge from bankruptcy “stronger” and with a “more sustainable capital structure” that actually matches its current business realities.
Another Pet Business Also Bites the Dust
Interestingly, Wag! isn’t the only animal-focused company in trouble this week.
Gulf World Marine Park in Panama City, Florida — a facility that’s been around for over half a century — also filed for Chapter 11.
The park was recently raided after five dolphins died between October 2024 and May while performing in shows.
That triggered public outrage and political pressure.
“These are not isolated incidents — they are signs of failure, and they demand immediate action,” Florida Senator Jay Trumbull wrote in a Facebook post.
Parent company The Dolphin Company has filed for bankruptcy as well, hoping to secure $8 million to restructure and regroup.
Pet Owners Are Also Feeling the Pinch
It’s not just businesses that are struggling. Economic strain is pushing many pet owners to make heartbreaking decisions.
Animal shelters across the country are seeing a rise in pets being surrendered because families can no longer afford to care for them.
The growing financial burden — from pet food to vet bills — is proving to be too much for many.