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PetSmart Lenders Are Questioning New Store Openings

  • Some skepticism on adding outlets as fewer shoppers show up
  • The expansion means about $160 million in capital spending
Updated on

Something’s not adding up for PetSmart Inc. lenders.

The company is already loaded with debt from a pricey e-commerce acquisition in 2017, and earnings have plunged as the $3 billion takeover of Chewy.com proves tough to integrate. Yet PetSmart’s managers plan to open as many as 60 new stores in 2018--after adding more than 100 over the past two years--according to people who listened to an earnings call late Thursday.