FORMERLY PE OWNED
Petco
pet supplies · San Diego, CA
- PE Firm
- CVC Capital, CPPIB
- Year Acquired
- 2016
CVC loaded $3.3 billion in debt onto a pet store, IPO'd it to pay themselves back.
What Happened
- CVC and CPPIB acquired Petco for $4.6B in 2016; four years later still carried $3.3B in debt with no meaningful paydown
- Credit analysts flagged Petco as high-risk in 2020, citing 'high financial leverage that stems from the acquisition'
- Third IPO in 2021 raised $864M primarily to service PE-era debt; stock subsequently cratered as sales declined
- Closing ~25 stores per year in 2024-2025 with bankruptcy speculation from CreditRiskMonitor
The Damage Done
- Cut nearly 5,000 employees while adding 59 stores — average staff per store dropped by one-fifth
- Documented pet deaths during grooming, including dogs dying from heat stroke in kennel dryers
- Hundreds of employees signed a 2020 letter reporting stores 'lack basic safety precautions' and had 'drastically cut hours'
- Closed 25 net stores in 2024 with financial analysts flagging serious bankruptcy risk — if Petco goes under, millions of pet owners lose access to vet clinics, grooming, and specialty food inside those stores