Platinum Equity is nearing an agreement to put an extra $100 million into Petmate to help its portfolio company avert a default, WSJ Pro Bankruptcy reported. Platinum, the Beverly Hills, Calif.-based private-equity firm led by Tom Gores, is expected to fund a new secured debt facility for Petmate to help the company meet coming payments due on other debt instruments. Petmate, which Platinum acquired in 2021, has struggled with slumping consumer demand for pet products that has made it difficult to satisfy the company’s high leverage. Petmate has been operating since 1959 and is known for its dog kennels, houses, toys and other canine treats and accessories. Pet owners are scaling back spending to cope with inflation-driven price increases and looking for lower-cost options, especially on discretionary items that generally generate higher margins.
