If you have walked past a dark storefront or seen “Sale” signs recently, you might be asking: is petco going out of business? It is a scary thought for pet parents who rely on them for kibble, grooming, or vet visits. The short answer is no, Petco is not shutting down its entire operation. However, the company is going through some very big changes that might make it look that way in certain neighborhoods.
In the retail world, things move fast. Lately, many people have noticed a few empty shelves or heard rumors about bankruptcy. While some big names have disappeared from malls lately, Petco is actually fighting to stay strong. They are currently in a “transformation” phase. This means they are closing some stores that don’t make money so they can keep the healthy ones running. When you see a local shop close, it’s natural to wonder, “is petco going out of business?” but usually, it just means they are moving their resources to a better location.
Understanding the Recent Petco Store Closures
One reason the question “is petco going out of business” keeps popping up is the steady stream of store closures. In 2024 and 2025, the company closed dozens of locations across the United States. For 2026, the strategy remains similar. They aren’t closing because they are broke; they are “optimizing their fleet.” This is a fancy way of saying they are getting rid of the stores that aren’t doing well.
Most of these closures are happening in areas where there are too many pet stores or where rent is too high. For example, some “Unleashed by Petco” shops (their smaller boutique stores) have been phased out. If your local store is still open, it likely means it is a high-performing “Pet Care Center” that the company plans to keep. So, while it feels like they are disappearing, they still have over 1,300 locations nationwide.
Petco Financial Health: A Look at the Numbers
To really answer is petco going out of business, we have to look at their bank account. As of early 2026, Petco successfully refinanced over $1 billion in debt. This is great news! It means banks still trust them enough to lend them money. While their sales were slightly down last year, their “Adjusted EBITDA” (a measure of profit) has remained steady.
The company’s leadership, including CEO Joel Anderson, has been very open about their plan. They are focusing on things that people can’t easily get online, like grooming and vet services. By doing this, they are making more money from the customers they already have. Even though the stock price has been a bit of a rollercoaster, the company has enough cash to keep the lights on for a long time.
Why Do People Think Petco is Closing?
Rumors often start on social media platforms like Reddit or TikTok. An employee might post about a store closing, and suddenly everyone starts searching, “is petco going out of business?” Another factor is the rise of online shopping. With giants like Chewy and Amazon delivering heavy bags of dog food to your door, many people assume physical stores are dying.
However, Petco has a secret weapon: services. You can’t get your dog’s nails trimmed on Amazon! By adding vet clinics and grooming stations to their stores, Petco is giving people a reason to visit in person. If you see a store getting a fresh coat of blue paint and a new vet office, that is a sure sign it isn’t going anywhere.
The Competition: Petco vs. PetSmart and Chewy
The pet industry is a “ruff” neighborhood. Petco is currently the second-largest brick-and-mortar pet retailer, trailing behind PetSmart. While PetSmart has a slightly larger market share, Petco is trying to win by being the “wellness” experts. They have stopped selling certain types of food with artificial ingredients to prove they care about pet health.
Petco’s “Phase 3” Transformation Plan
Management has talked a lot about “Phase 3.” This is the part of their plan where they stop shrinking and start growing again. To do this, they are focusing on their VitalCare membership program. This program gives pet owners discounts and free vet exams for a monthly fee. It’s a smart way to make sure people keep coming back to Petco instead of shopping elsewhere.
If you are still asking is petco going out of business, keep an eye on these memberships. If people keep signing up, the company will stay healthy. They are also working on “merchandising,” which means putting more exciting and exclusive toys on the shelves that you can’t find at the grocery store.
What Happens if Your Local Petco Closes?
It is a big bummer when a store near you shuts down. If this happens, it doesn’t mean the whole company is failing. Usually, Petco will try to move your grooming appointments or prescriptions to the next closest location. You can also still use their website or app to get your supplies delivered.
Sometimes, a closure is just a “landlord issue.” If a mall is being torn down or a lease gets too expensive, Petco might leave even if the store was making money. In these cases, they often look for a new building nearby to open a more modern version of the shop.
Is Petco Bankruptcy Possible in 2026?
Currently, there is no evidence that Petco is filing for Chapter 11 bankruptcy. While they have a lot of debt, they are paying it off on time. In fact, they recently made a voluntary $50 million payment to lower their debt even faster. Companies that are about to go out of business don’t usually pay extra on their loans!
Financial experts generally give Petco a “Hold” rating. This means they aren’t in total trouble, but they still have work to do. As long as they keep managing their costs and bringing in “pet parents” for services, the risk of them going away completely is very low.
The Future of Pet Retail in a Digital World
The way we shop for our furry friends is changing. Petco knows this, which is why they offer “BOPIS” (Buy Online, Pick Up In Store). This combines the ease of the internet with the speed of a local shop. If you need a leash right now, you can’t wait for a delivery truck.
This “omnichannel” approach is how Petco plans to survive. By being both an online store and a local neighborhood hub, they hope to stay relevant for another 60 years. So, the next time you hear someone ask, “is petco going out of business?” you can tell them that the company is simply evolving.
Expert Personal Insights on Petco’s Strategy
I have followed retail trends for years, and Petco’s current path is actually quite common for legacy brands. They are “trimming the fat” to become leaner and faster. In my opinion, their focus on veterinary care is their best move. There is a huge shortage of vets in the U.S., and by putting clinics inside their stores, they are solving a real problem for pet owners. This “humanization” of pets—treating them like family members—means people are willing to spend more on high-quality care, which helps Petco’s bottom line.
Frequently Asked Questions
1. Is Petco going out of business permanently? No, Petco is not going out of business. While they are closing a small number of underperforming stores, they still operate over 1,300 locations and have recently secured new financing to stay in business.
2. Why are so many Petco stores closing? Petco is closing stores that aren’t making enough profit or are in locations with too much competition. This is part of a plan to make the company more profitable and focused on wellness services.
3. Does Petco have financial problems? Petco has a significant amount of debt, but they have recently refinanced it and are making regular payments. Their latest financial reports show they are meeting their profit goals for 2026.
4. Will Petco be bought by another company? There are always rumors about mergers, but currently, Petco is an independent, publicly-traded company (Nasdaq: WOOF). There is no official news about a sale.
5. Can I still use my VitalCare rewards if my store closes? Yes! Your rewards and memberships are tied to your account, not just one store. You can use them at any other Petco location or on their website.
6. Is Petco still a good place to buy pets? Petco continues to focus on animal welfare. They partner with local shelters for cat and dog adoptions and still sell small animals, fish, and reptiles in most locations.
Conclusion: Don’t Panic About Petco
To wrap it all up, the rumor that is petco going out of business is mostly just a misunderstanding of how big companies change. Yes, some stores are closing, but it is a strategy to make the rest of the company stronger. With fresh funding and a focus on vet services, Petco is settling in for the long haul. Your pets can rest easy knowing their favorite treat spot is likely staying put.