Wag, once a rising star in the gig economy and pet care world, has officially filed for Chapter 11 bankruptcy. The San Francisco-based company, best known for connecting pet owners with on-demand dog walkers and sitters through its app, announced the move on July 21 as it seeks to overhaul its finances and shift from a public to private company.
At its peak, Wag enjoyed a $650 million valuation and positioned itself as a one-stop tech platform for pet services. However, years of mounting losses, debt obligations, and the lasting effects of the COVID-19 pandemic have pushed the company to the brink.
Despite the bankruptcy filing, Wag says its services — including dog walking, pet sitting, veterinary tools under its “Furscription” brand, and pet insurance — will continue uninterrupted during the restructuring process. If the plan is approved by a bankruptcy court, ownership of the company will shift to Retriever, the current holder of Wag’s debt.
Pandemic Fallout and Mounting Debt
Wag’s financial troubles began accelerating in early 2020 when the pandemic drastically reduced the need for dog walking services. As people stayed home, demand plummeted, and the company’s monthly revenues took a hit. According to a court document submitted by Wag’s chief financial officer, Alec Davidian, the company lost about $69.5 million between 2022 and 2024.
To make matters worse, Wag had borrowed money in 2022 when it became a publicly traded company. As part of that deal, the company agreed to keep a minimum amount of cash on hand. That cushion disappeared earlier this year, placing Wag in violation of the agreement and in urgent need of new funding.
Attempts to raise capital or find an outside partner fell flat. With its debt due in August and no fresh funding in sight, Wag decided to enter bankruptcy court to eliminate its outstanding debt and reorganize its finances under Retriever’s ownership.
From Star Power to Financial Freefall
Wag’s bankruptcy marks a stark contrast to the early years of success it once enjoyed. Founded in 2014, the startup quickly gained popularity and high-profile backers. Celebrities like Mariah Carey and Kendall Jenner were given promotional perks such as “free dog walks for life” to help generate buzz. In 2018, SoftBank’s Vision Fund invested a massive $300 million in the company, giving it a lofty valuation of $650 million.
But the investment didn’t deliver the results expected. Just a year later, SoftBank offloaded its stake back to Wag. Around the same time, the company brought in new leadership, cut jobs, and relocated its headquarters from Los Angeles to San Francisco in an effort to pivot and regain traction. Meanwhile, competitors like Rover were growing quickly and eating into Wag’s market share.
Reinvention Efforts Fall Short
In response to the pandemic and shifting consumer needs, Wag introduced new services, including pet health features like “Furscription” and insurance offerings. These moves were intended to help the company diversify and stabilize revenue. While the broader pet care market remains robust, Wag struggled to carve out a sustainable niche.
Despite continuing to operate and innovate, Wag never regained the momentum it once had. By mid-2025, the company’s stock had plummeted to just 12 cents a share, giving it a valuation of under $6 million — a steep fall from its earlier $650 million height.
Wag’s future now hinges on court approval of its restructuring plan. If approved, the company will be taken private under Retriever’s ownership and emerge from bankruptcy with reduced debt and a leaner financial model. The goal, according to internal filings, is to create a more stable foundation for Wag’s operations moving forward.
For now, customers can still use Wag’s platform as usual, and there are no expected disruptions to services. But the bankruptcy filing signals the end of Wag’s time as a public company and the beginning of a new, uncertain chapter.
