Animal Supply Company Informs Employees of Layoffs, Plant Closure, and Potential Sale to Pet Food Experts

Pet retailers have speculated for months now that distributor Animal Supply Company (ASC) would be going out of business or be sold. Retailers watched as inventory from certain brands became unavailable through ASC, multiple brands moved their business to other distributors, and its Universal Buying Show was postponed last minute in January. On Thursday, the company sent an email to employees informing them of impending layoffs and closure of its Grand Prairie, TX, facility.

With the subject line of “Notice of Reductions in Force and a Permanent Plant Closure,” the email from Kady Steele, senior director of human resources at ASC, began with, “I am writing on behalf of Animal Supply Company LLC (the “Company”) to give you notice of reductions in force and a plant closure that may be occurring at the Company.”

The email stated that: “The Company has been facing a deterioration of business conditions and a liquidity crunch, which has resulted in an urgent need to conserve cash in order to continue as a going concern. In order to remain fully operational and prevent a mass layoff or business shutdown, the Company has been working with its investment banker and its secured lenders to obtain additional funding, including, but not limited to, pursuing several options for a purchase of assets by a qualified buyer.”

Steele let employees know that ASC has a “letter of interest” from distributor Pet Food Experts (PFX), but that, “The parties have not yet entered into a binding agreement, and the Company continues to negotiate with Pet Food Experts regarding the specific terms of sale.”

She went on to state that if ASC and PFX did not enter a binding agreement, layoffs may begin as early as Friday, Feb. 7, or within 14 days thereafter, and that the Grand Prairie facility would shut down by Feb. 21. If the sale to PFX goes, ASC would lay off all employees and shut down the facility no later than Feb. 21 in connection with that transaction. Steele also stated that PFX may reach out to employees to offer employment opportunities.

We have reached out to ASC for comment and clarification on certain elements in this email. We also reached out to PFX for comment and have not yet heard back, but a retailer did share with us an email that went out Friday from PFX CEO Greg Cyr. It states:

“You may have already heard through other channels, but I wanted to personally update you on an important development. Pet Food Experts is in negotiations to acquire select assets of Animal Supply Company. While the agreement is not yet final, we believe this strategic move aligns with our long-term vision of expanding our capabilities to better serve you.

“Throughout this process, our commitment to you remains unchanged. We will continue to deliver the same high levels of service, efficiency, and support you rely on. We are dedicated to ensuring a seamless transition and will keep you informed as things progress.

“Thank you for your continued trust in Pet Food Experts. We are excited about the future and look forward to continuing to serve you.”

Read the email to ASC employees in its entirety here

We will continue to update this story as it develops.