Pet Services Provider Benefits from Integrated Approach to Chapter 11 Reorganization
Portage Point paired restructuring capabilities with operational and financial advisory expertise to position Wag! Labs for future success
SITUATION OVERVIEW
Wag! Labs, a leading on-demand dog walking and pet services provider, was facing mounting net operating losses and revenue decline during the COVID-19 pandemic, presenting a need to restructure the business and its balance sheet. After a nearly year-long marketing process yielded no viable purchasers for the Company or its assets, Wag! faced liquidity and debt maturity issues with no feasible path to recapitalization.
PORTAGE POINT APPROACH
- Structured and negotiated a $6.5 million debtor-in-possession facility with the largest secured creditor, ensuring sufficient liquidity throughout the process with zero operational disruptions
- Created financial tools, including detailed cash flow and long-term business plan models, to provide stakeholders with enhanced visibility and controls
- Negotiated with creditors to consummate restructuring, as well as secure an exit financing facility ensuring sufficient liquidity for future growth initiatives
POSITIVE IMPACT
Wag! emerged from Chapter 11 in under 45 days. The speed of the overall process made it one of the most efficient prepackaged reorganizations of its kind, maintaining uninterrupted service delivery throughout the bankruptcy process, preserving customer relationships and platform integrity critical to future growth. Today, Wag! operates with a sustainable cost structure, paired with the capital and operational tools necessary to execute value creation initiatives.
