Most pet owners pamper their pets and will go to nearly any extreme to make sure they live a long, healthy life.
Our 18-year-old house cat, for example, needs thyroid medicine twice a day, which has to be carefully handled, as it can’t be touched. We put on gloves, use disposable bowls, smash it in a pill crusher, mix it into a treat, and feed it to her.
That’s actually relatively easy compared to people who give their dogs or cats injections or force pills down unwilling animals’ throats. Americans clearly love their pets and have been willing to spend big on them.
Average household spending: American pet households are projected to spend about $1,733 per year on pets in 2024, including food, products, and care. (Source:Lending Tree Pet Spending Study)
Projected growth: The U.S. pet industry is projected to grow further, with spending expected to reach around $157 billion by 2025. (Source:American Pet Products)
Despite all this spending, Three Dog Bakery franchisee J.L.E.T. Enterprises has filed for Chapter 11 bankruptcy protection.
“J.L.E.T. Enterprises, LLC, a North Port, FL-based pet specialty retailer and grooming service provider, 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 under Subchapter V of the bankruptcy code,” RK Consultants reported.
The company has 10 years of history.
“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 operational footprint was centered at The Shoppes at University Town Center in Sarasota, where it maintained a boutique retail presence specializing in premium pet food and accessories,” the consulting firm added.
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 on PacerMonitor.
More Bankruptcy:
“J.L.E.T. Enterprises faced litigation in the Western District of Missouri involving allegations of trademark infringement and breach of non-compete provisions after attempting to transition to independent operations,” added RK Consultants.
The company intends to use the restructuring process to resolve these legal liabilities and address mounting debts to landlords and legal counsel.
Americans spend billions on their pets each year. Shutterstock ·Shutterstock
Chapter 11 voluntary filing: J.L.E.T. Enterprises, LLC filed a voluntary Chapter 11 bankruptcy petition on January 15, 2026, in the U.S. Bankruptcy Court for the Middle District of Florida, beginning the reorganization process. The case was assigned Case No. 26-00096.
Subchapter V small business designation: The petition was filed under Chapter 11 Subchapter V, a streamlined reorganization process designed for small businesses, and initial documents such as schedules and statements were noted as not yet complete at filing.
Debtor and business names: The filing identifies the debtor’s principal as J.L.E.T. Enterprises, LLC with doing business as Lucy’s Dog Bakery & Spa, Three Dog Bakery & Grooming, and Diversified Services SWF, indicating the company’s operations in pet-related services.
Attorney and representation: The Chapter 11 petition was filed by Michael R. Dal Lago on behalf of the debtor; the initial docket entries include the voluntary petition, statement of corporate ownership, and statement of operations.
Reorganization deadlines: As with many Subchapter V small business cases, the debtor must submit a plan of reorganization within a defined period; in this case, the reorganization plan deadline was set for April 15, 2026. Source: Bankruptcy Observer
“The global pet shops 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.
Operating a pet store, however, has become more challenging.
“Battles for market share are always difficult for smaller retailers, which generally operate with less financial flexibility than their larger peers on multiple fronts,” Charlie O’Shea, Moody’s lead 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 the 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, retailers who sell pets must find a way to differentiate themselves from other stores locally and online. It’s the only way they will survive in a highly competitive market,” United Commercial Financial Services, which provides funding for businesses, shared.
Smaller retailers, the report noted, need to match the service offered by larger players.
“Shoppers are accustomed to 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 could want,” the study showed.
Because of the big players in the space, smaller retailers face meaningful challenges.
“This fragmentation complicates the development and execution of uniform shopper marketing programs within individual markets as well as across the country. This is particularly problematic for smaller brands who often operate with limited resources and must carefully and strategically select which retail channels and what programs they will leverage to grow their business,” according to Ignite 2X’s The Pet Retailer Dilemma.
