Wag! Group Co. wins court approval for speedy bankruptcy exit with creditor backing

Wag!, a dog walking service, has won court permission to try for a speedy bankruptcy exit under prepackaged bankruptcy rules. With senior creditor Retriever LLC providing $6.5 million in debtor-in-possession financing, the company could exit bankruptcy as early as Sept. 1. Wag! had been facing difficulties since the Covid-19 pandemic and had agreed to a deal to go public via a merger in 2022.

Wag! Group Co., the on-demand dog walking service, has received court permission to attempt a swift bankruptcy exit under prepackaged bankruptcy rules. The company aims to reduce debt and transfer control to senior creditor Retriever LLC, with a potential exit date as early as September 1. This development follows years of financial struggles exacerbated by the COVID-19 pandemic and a public offering attempt in 2022 [1].

Wag! filed for Chapter 11 bankruptcy on July 21, 2025, following a pre-packaged plan of reorganization. The plan, which has already received backing from Retriever LLC, seeks to restructure the company's debt and position it for long-term success. Under the plan, Retriever LLC will assume ownership of the reorganized company after court approval, providing $6.5 million in debtor-in-possession financing to support operations during the process [2].

The company's financial difficulties began during the COVID-19 pandemic, when pet owners reduced their need for pet care services. In 2022, Wag! agreed to go public via a merger with a special purpose acquisition company, valued at approximately $350 million. However, the company struggled to maintain the required liquidity levels, leading to difficulties in repaying its senior secured loan of $16.3 million [1].

Retriever LLC, a privately held company providing lending and institutional support to pet-related businesses, acquired the debt and obligations outstanding from Blue Torch Finance LLC earlier this year. The company's restructuring plan is designed to be implemented on an accelerated basis, with Wag! expecting to emerge from Chapter 11 within approximately 40 days [2].

Wag! believes it has a clear and executable path toward confirmation and emergence, with a strengthened financial foundation and the resources needed to execute on its long-term strategic priorities. The plan of reorganization is subject to approval by the U.S. Bankruptcy Court for the District of Delaware, with a hearing scheduled for August 29. Any holdout creditors have until August 22 to object to the reorganization [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-07-22/dog-walking-app-wag-gets-nod-to-try-for-speedy-bankruptcy-exit
[2] https://finance.yahoo.com/news/wag-group-co-announces-recapitalization-100000927.html