Wag, a pet care service company, filed for bankruptcy on July 21 to restructure under Chapter 11. It aims to eliminate its 2022 debt while maintaining operations in dog walking, sitting, pet insurance, and veterinary tools. The company faced declining revenues since March 2020 due to the COVID-19 pandemic and reported losses of $69.5 million from 2022 through 2024. Moreover, Wag did not meet the cash requirements set in its 2022 loan agreement, contributing to its liquidity crisis. With bankruptcy proceedings, Wag aspires to emerge as a stronger entity.
Wag filed for bankruptcy to restructure under Chapter 11, aiming to eliminate $2022 debt while continuing its services like dog walking, sitting, and insurance.
Wag's monthly revenues plummeted after March 2020 due to COVID-19, resulting in $69.5 million in losses from 2022 through 2024.
Wag faced liquidity issues after dropping below a minimum cash threshold established in its 2022 loan agreement, leading to its bankruptcy filing.
Wag aims to emerge from Chapter 11 as a stronger company despite its significant losses and challenges in securing additional funding.
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