Empty Petco: A 8 min Walkthrough of a Store on the Brink of Bankruptcy??

Exploring the Petco store in Skokie, IL, situated within the Orchard Place mall, I was intrigued by its resilience amid speculations about potential closures. Despite being among the top 11 retailers facing bankruptcy risks, as highlighted in a Retail Dive article citing CreditRiskMonitor's assessment, Petco has managed to stay afloat. In this walkthrough, it will be quite clear how bad business is, and in midst of an enormous debt, you'll start to wonder how this once adored pet specialty retailer is going to survive.
While metrics like the Frisk score point to a shaky financial standing, my on-the-ground experience inside the store reveals high prices and a noticeable lack of customer activity. Similar to Big Lots, Petco faces a 4% to 10% likelihood of bankruptcy within the next year. Despite weathering the storm of increased pet ownership during the pandemic, recent sales dips and a substantial $3 billion debt burden raise concerns. While efforts to reduce debt may act as a safeguard, they also impact profitability, potentially leading to store closures in the upcoming year.
The historical context of Petco traces back to its founding in 1965 as a mail-order veterinary supply company, evolving into a pet food and supplies chain. Through various ownership changes, including acquisitions by The Spectrum Group, Inc., Thomas H. Lee Company, Leonard Green & Partners, Texas Pacific Group, and subsequent sales to CVC Capital Partners and the Canada Pension Plan Investment Board, Petco has undergone significant transformations.
As of 2021, the company boasts approximately 1,500 Petco stores across the United States, Mexico, and Puerto Rico, offering a range of pet products and services. These include pet food, supplies, small animals, and fish, with some locations providing additional services like obedience training, dog grooming, pet vaccinations, and veterinary care. The company also owns subsidiary ventures such as the PetCoach app, PetInsuranceQuotes.com, and Vital Care, a subscription service for veterinary care. Stay tuned for updates on Petco's journey amid the evolving retail landscape.