Independent Pet Partners Files for Chapter 11 Bankruptcy

Independent Pet Partners (IPP), the parent company of pet specialty brands Chuck & Don’s, Kriser’s, Natural Pawz and Loyal Companion, on Sunday, February 5 filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the District of Delaware.

Companies facing mounting financial pressures can utilize the action as an opportunity to restructure debts as it continues to do business and carve a path forward. The act of filing for Chapter 11 does not reflect an imminent closure but more a chance to reorganize. IPP said it will be reducing its store footprint from its current 163 locations to 66 stores in its core markets of Colorado, Kansas, Minnesota, Wisconsin and Illinois, under just the Chuck & Don’s and Kriser’s banners.

Pet Insight has created a visualization, illustrating which stores underneath the IPP umbrella will remain open, face closures or could be acquired.

The company cited several factors that led to the decision including: “a) challenges related to our early growth strategies, (b) unexpected changes in consumer behavior resulting from a potentially fatal heart disease in dogs, (c) the effects of the Covid-19 pandemic on the retail industry, (d) recent inflation trends, (e) maturing credit facilities, and (f) a prepetition sale process that could not identify an executable, going-concern transaction.”

IPP plans to sell 66 stores operating under the Chuck and Don’s and Kriser’s banners as part of the bankruptcy sale process. Store operations and vendor agreements would proceed as normal in the meantime. The remaining stores would be closed as soon as was practical, with the goal of completing the liquidation process by the end of February. IPP is discontinuing the Natural Pawz and Loyal Companion banners.

Most returns/exchanges, gift cards and rewards redemptions would be honored through February.