Most pet owners pamper their pets and will go to almost any extreme to ensure they live long and healthy lives.
Our 18-year-old house cat, for example, needs thyroid medication twice a day, which has to be handled with care because it can’t be touched. We put on gloves, use disposable bowls, crush it in a pill crusher, mix it into a treat and give it to her.
This is actually relatively easy compared to people giving their dogs or cats injections or forcing pills down the throats of unwilling animals. Clearly, Americans love their pets and have been willing to spend a lot on them.
Average household expenses: American pet households are projected to spend approximately $1,733 per year for pets in 2024including food, products and care. (Source:Loan Tree Pet Spending Study)
Dog owner costs vs. the cat: In 2025 reports, the US average dog owners spend about $2,524 per yearand cat owners about $1,499 per year on their pets. (Source:CitizenShipper Unveils 2025 Cost of Pet Ownership Report)
Projected Growth: The US pet industry is projected to continue to grow, with spending expected to reach around $157 billion by 2025. (Source:American Pet Products)
Despite all these expenses, Three Dog Bakery franchisee JLET Enterprises has filed for Chapter 11 bankruptcy protection.
“JLET Enterprises, LLC, a North Port, FL-based pet specialty retailer and provider of animal care services, filed for Chapter 11 protection on January 15, 2026 in the Middle District of Florida. The company, which operated as a franchisee of the Three Dog Bakery brand, filed for subchapter V bankruptcy,” RK Consultants reported.
The company has 10 years of history.
“Established in 2016 by Joseph and Lynette Naughton, the company operated retail locations in Naples and Sarasota, Florida. Its service offerings included fresh dog food, holiday cookies and professional grooming services. The company’s primary operating footprint was centered at The Shoppes at University Town Center in Sarasota, where it maintained a specialty consulting presence in pet retail stores.”
The filing follows a protracted legal dispute with franchisor Three Dog Bakery, LLC, which terminated the company’s franchise agreement in May 2025, according to documents filed with PacerMonitor.
More bankruptcy:
“JLET Enterprises has faced litigation in the Western District of Missouri involving allegations of trademark infringement and violation of non-compete provisions after attempting to transition to independent operations,” RK Consultants added.
The company intends to use the restructuring process to resolve these legal liabilities and to address mounting debts to owners and legal counsel.
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Americans spend billions on their pets every year. Shutterstock ·Shutterstock
Chapter 11 Voluntary Filing: JLET Enterprises, LLC filed a voluntary Chapter 11 bankruptcy filing on January 15, 2026in US Bankruptcy Court for the Middle District of Floridastarting the reorganization process. The case has been assigned Case no. 26-00096.
Subchapter V small business designation: The petition was filed under Chapter 11 Subchapter Va streamlined reorganization process designed for small businesses, and initial documents such as schedules and statements were marked as incomplete upon filing.
Debtor and trade names: The file identifies the principal of the debtor as JLET Enterprises, LLC with they do business as Lucy’s Dog Bakery & Spa, Three Dog Bakery & Grooming and Diversified Services SWFindicating the company’s operations in pet-related services.
Lawyer and representation: The Chapter 11 petition was filed by Michael R. Dal Lago on behalf of the debtor; the initial filings include the voluntary petition, the statement of corporate ownership, and the statement of operations.
Reorganization deadlines: As with many Subchapter V small business cases, the debtor must present a reorganization plan in a certain period; in this case, the deadline of the reorganization plan was established April 15, 2026. Source: Bankruptcy Observer
“The global pet store market size is estimated at $5.86 billion in 2025 and is projected to grow steadily to $6.16 billion in 2026, reaching nearly $6.48 billion in 2027,” according to Global Growth Insights.
However, running a pet store has become more difficult.
“Battles for market share are always difficult for smaller retailers, who generally operate with less financial flexibility than their larger peers on several fronts,” Charlie O’Shea, Moody’s principal retail analyst and author of the report, said in a statement to Retail Dive. “If they engage in the promotional battle, margins will suffer; avoid promotions and risk losing revenue, market share and customer loyalty.”
The combination of competition also adds to the challenge.
“Between national chains and boutique breeders and stores, pet retailers must find a way to differentiate themselves from other stores locally and online. It’s the only way they’re going to survive in a highly competitive market,” said United Commercial Financial Services, which provides business financing.
Smaller retailers, the report says, need to match the service offered by the bigger players.
“Shoppers are used to on-demand pet products from stores like Amazon and Walmart and specialty pet stores like Chewy and Bark Box. And Amazon is setting the standard for fast home delivery of almost any product a shopper could want,” the study says.
Thanks to the big players in the space, smaller retailers face significant challenges.
“This fragmentation complicates the development and execution of consistent shopper marketing programs in individual markets as well as across the country. This is especially problematic for smaller brands who often operate with limited resources and must carefully and strategically choose which retail channels and programs to use to grow their business,” according to The Pet Retailer Dilemma from Ignite 2X.
Related: Women’s mall retailer begins liquidation, closing all stores
This story was originally published by TheStreet on January 18, 2026, where it first appeared in the Retail section. Add TheStreet as a favorite source by clicking here.
