Most pet owners pamper their pets and will go to almost any extreme to ensure they live long, healthy lives.
Our 18-year-old house cat, for example, requires twice-daily thyroid medication, which must be handled carefully since it cannot be touched. We wear gloves, use disposable bowls, break it up in a cookie crusher, mix it into a treat, and feed it to him.
It’s actually relatively easy compared to people injecting their dogs or cats or putting pressure on unwilling animals. Americans clearly love their pets and are willing to spend big on them.
Average Household Expenditure: US pet owners are estimated to spend About $1,733 per year in pets in 2024Including food, produce and care. (Source:Lending Tree Pet Spending Study)
Dog vs. Cat Ownership Costs: In 2025 reports, the average US Dog owners spend $2,524 per yearand Cat owners $1,499 per year on your pets. (Source:(CitizenShipper Unveils 2025 Cost of Pet Ownership Report)
Estimated Growth: The US pet industry is projected to grow further, 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 grooming service provider, filed for Chapter 11 protection in the Middle District of Florida on January 15, 2026. The company, which operated as a franchisee of the Three Dog Bakery brand, filed under Subchapter V of the RK Bankruptcy Code,” it reported.
The company has a history of 10 years.
“Founded in 2016 by Joseph and Lynette Naughton, the company operated retail locations in Naples and Sarasota, Florida. Its service offerings included fresh-baked dog treats, celebration cakes, and professional grooming services. The company’s primary operating footprint was centered on the Shoppes at University Town Center, with a special presence in Saramota. pet food and accessories,” the consulting firm added.
According to documents filed with PacerMonitor, the filing follows a lengthy legal dispute with franchisor Three Dog Bakery, LLC, which terminated the company’s franchise agreement in May 2025.
More bankruptcies:
“JLET Enterprises has filed a lawsuit alleging trademark infringement and violation of non-compete provisions after attempting to transition to independent operations in the Western District of Missouri,” RK Consultants added.
The company intends to use the restructuring process to resolve these legal liabilities and address mounting debts to landlords and legal counsel.
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Americans spend billions on their pets each year. Shutterstock ·Shutterstock
Chapter 11 Voluntary Filing: Filed JLET Enterprises, LLC Voluntary Chapter 11 Bankruptcy Petition in January 15, 2026in US Bankruptcy Court for the Middle District of FloridaBegin the reorganization process. The case was assigned Case No. 26-0096.
Subchapter V Small Business Designation: An application was made under Chapter 11 Subchapter VA streamlined reorganization process designed for small businesses, and initial documents such as schedules and statements were noted as incomplete when filed.
Creditor and Business Name: The filing identifies the debtor as the principal JLET Enterprises, LLC with Lucy’s Dog Bakery and Spa, Three Dog Bakery and Grooming, and Miscellaneous Services Trading as SWFDenoting the company’s operations in pet-related services.
Attorneys and Representations: A Chapter 11 petition was filed Michael R. Dalgo on behalf of the debtor; Initial docket entries include a voluntary petition, a statement of corporate ownership, and a statement of operations.
Reorganization Time Limit: As with most subchapter V small business cases, the debtor must submit a Reorganization plan within the prescribed period; In this case, the deadline for the restructuring plan was set April 15, 2026. Source: Bankruptcy Observer
According to Global Growth Insights, “The global pet stores market size is estimated at $5.86 billion in 2025 and is expected to grow steadily to $6.16 billion in 2026, reaching approximately $6.48 billion in 2027,” according to Global Growth Insights.
Operating a pet store, however, has become more challenging.
“Battles for market share are always tough for smaller retailers, who typically operate on multiple fronts with less financial flexibility than their larger peers,” Charlie O’Shea, Moody’s lead retail analyst and author of the report, told Retail Dive in a statement. “If they engage in a promotional battle, margins will suffer; stay away from promotions, and you risk losing revenue, market share and customer loyalty.”
The mix of competition also adds to the challenge.
“Between nationwide chains and boutique breeders and shops, pet retailers must find ways to differentiate themselves from other stores locally and online. It’s the only way they can survive in a highly competitive market,” shares United Commercial Financial Services, which provides funding for businesses.
Smaller retailers, the report noted, will have to match the service offered by the big players.
“Shoppers are used to using on-demand pet products from stores like Amazon and Walmart and specialty pet stores like Chewy and Bark Box. And Amazon sets the standard for fast home delivery for almost any product a shopper wants,” the study found.
Because of the big players in the space, small retailers face significant challenges.
“This fragmentation complicates the development and implementation of uniform shopper marketing programs in individual markets and across countries. This is especially problematic for smaller brands who often operate with limited resources and must carefully and strategically select which retail channels and which programs they leverage to grow their business,” according to Ignite 2X’s Dela Petma Retailer.
Related: Mall-based women’s 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 preferred source by clicking here.
