UPDATE Nov. 11 — PetSmart's plans to sell its e-commerce subsidiary, Chewy, did not go exactly to plan, according to an analysis by Scott Josefsberg, head of special situations research at Covenant Review. The deal was called off in November after it was rejected by creditors, Josefsberg explained.

PHOENIX — PetSmart, Inc. announced Oct. 26 plans to sell all shares of Chewy Inc. common stock and its related subsidiaries, effectively eliminating Chewy as a subsidiary of PetSmart. The leading US retailer acquired the pet e-commerce platform in May 2017.

Chewy would continue to be owned by BC Partners, which acquired PetSmart and its subsidiaries in March 2015. The two retailers will exist independently going forward.

“Following completion of the Chewy Distribution, PetSmart will not own any shares of Chewy common stock. Accordingly, neither Chewy nor any subsidiary of Chewy will be a subsidiary of PetSmart,” PetSmart stated in its recent notes offering announcement.

Bloomberg reported on Oct. 22 that BC Partners plans to refinance PetSmart with $1.3 billion in equity and $4.7 billion in debt, totaling $6 billion in capital.

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