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Is Petco Private Equity Owned?
🟡 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
Sources
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Frequently Asked Questions
Is Petco owned by private equity?
Not anymore. Petco was formerly owned by CVC Capital, CPPIB starting in 2016, but the firm has since exited. The effects of PE ownership often linger.
What happened to Petco after the acquisition?
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
Who owns Petco?
Petco is owned by CVC Capital, CPPIB, which acquired it in 2016.