If you remember ordering pet supplies from Drs. Foster & Smith, you’re not alone. This was once a go-to retailer for pet owners across the U.S., well-known for its wide catalog and veterinary expertise. In 2019, however, Drs. Foster & Smith officially went out of business. Petco, which acquired the company in 2015, announced it would permanently close most of the company’s operations.
For pet owners and entrepreneurs, this kind of closure comes with big ripple effects—job losses, lost vendor relationships, and plenty of questions about what happens next. Here’s what to know about why Drs. Foster & Smith closed, what happened to its employees and assets, and what you can take away from this business chapter.
Background on Drs. Foster & Smith
Founded in 1983 in Rhinelander, Wisconsin, Drs. Foster & Smith built a reputation for providing pet medications, supplies, and expert advice directly to consumers. The company grew quickly by focusing on high-quality products and excellent customer service—mainly through mail order and, later, a robust online shop.
By the early 2000s, Drs. Foster & Smith was one of the largest catalog and online sellers of veterinary products in America. Their two founding veterinarians, Dr. Race Foster and Dr. Marty Smith, became familiar names in pet circles. The brand stood for credibility and expertise, offering advice articles and direct access to veterinary resources.
The company’s strong performance caught the attention of Petco, a national pet store chain. In 2015, Petco acquired Drs. Foster & Smith. According to public statements, the goal was to combine Petco’s retail scale with Drs. Foster & Smith’s mail-order expertise and customer loyalty. The plan was good, in theory. But as you’ll see, the retail landscape was shifting fast.
Details of the Closure
On February 12, 2019, Petco announced it would be shutting down Drs. Foster & Smith. The closure covered the company’s entire core business—catalog and online sales—while sparing only the LiveAquaria brand (focused on aquarium hobbyists).
The announcement specifically affected 289 employees working in Rhinelander, Wisconsin. Petco delivered news of the layoffs, indicating the positions would be eliminated over a period of 60 to 120 days. This included customer service, call center, pharmacy, and warehouse staff—essentially, anyone supporting the Drs. Foster & Smith brand.
For local families and the Rhinelander economy, this meant significant job losses. Petco provided some transition support, but for many workers, a specialized rural job market posed real challenges in finding new work quickly.
The timeline advanced rapidly. Fulfillment centers began processing their last orders, while the pharmacy and call center teams communicated closure details to customers. By June 2019, Drs. Foster & Smith’s main operations were shuttered completely.
Transition of Operations
If you tried to visit the Drs. Foster & Smith website after the announcement, you’d have seen a redirect to Petco.com. Petco aimed to keep existing customers in their ecosystem, but unified the catalog under the Petco brand. This shift streamlined the buying process from Petco’s perspective, but it left some loyal customers confused or disappointed.
By mid-2019, every key operation—call center, warehouse, and the in-house pet pharmacy—was closed. For entrepreneurs, this process reflects what you may need to plan for if you’re ever faced with a wind-down:
Email and phone communication to all affected customers (with specific dates and instructions)
Employee notifications, layoffs, and transition support according to law and company values
Clearing out warehouse inventory, sometimes with clearance sales or donations
Redirecting brand assets online (such as website links and digital content)
If your company faces a similar transition, set aside time to outline each closure phase clearly for stakeholders. Early preparation reduces confusion and ensures compliance with business and labor laws.
Exception: The Survival of LiveAquaria
One part of Drs. Foster & Smith didn’t disappear—LiveAquaria, their specialty division for aquarium enthusiasts, continued to operate independently for a time. LiveAquaria specialized in live fish, corals, and aquatic plants, maintaining a solid reputation within the hobbyist community.
After the main company’s closure, LiveAquaria continued to run its own website, customer support, and fulfillment from the Rhinelander facility. Eventually, LiveAquaria itself changed hands, but its survival demonstrated that a niche—with a strong brand and loyal customers—can sometimes withstand wider shutdowns.
You may need to evaluate similar options in your own business. If one division is profitable and distinct, there could be an argument to spin it off or sell it separately when the parent company closes or is sold. This could preserve value and jobs for your team.
Impact and Reactions
The news of Drs. Foster & Smith’s closure sparked strong reactions from employees, customers, and local leaders. Many pet owners expressed frustration about losing a trusted supplier, and staff in Rhinelander reported deep concern for families and the local economy.
Here are some common themes that surfaced from the closure:
- Loss of Specialized Expertise:
Customers valued the veterinary knowledge and detailed product advice available at Drs. Foster & Smith. After closure, many said they struggled to find the same level of support from larger, more generalized retailers. - Job Market Challenges:
The closure of a major employer in a small community can be a wake-up call. For example, some Rhinelander staff had decades of tenure and strong loyalty. They shared that the sudden change created ripples far beyond the workplace—impacting local schools, small businesses, and housing. - Industry Shifts and Lessons:
For many business-watchers, Petco’s decision came down to shifts in consumer expectations and retail logistics. The pet supply industry saw growth in subscription services, fast shipping, and direct-to-consumer brands. Older catalog-based models became harder to sustain. You may want to study these trends in your own sector; staying flexible can help you adapt before change is forced on you. - Business Decision Analysis:
Petco stated publicly that the closure was a business decision—largely about streamlining operations and focusing on higher-growth opportunities elsewhere. It’s a reminder that acquisitions come with both opportunities and risks. Due diligence ensures you understand what’s likely to change post-acquisition, especially if you’re merging with a bigger player.
What Entrepreneurs and Small Business Owners Can Learn
There are clear lessons here for small-business owners and founders:
Always Monitor Your Market Fit:
Set aside time regularly to check if your core products or services are still meeting your customers’ current needs. Legacy brand value is important, but competition and technology keep shifting quickly.
Plan for Transition and Exit Early:
Even profitable companies need an exit plan. Consider how you’ll communicate with staff and customers, who will run the process, and which assets—physical, digital, or human—might be protected or spun off.
Empathy Matters in Closure:
As Drs. Foster & Smith’s story shows, how you handle closures can greatly affect your legacy with both employees and loyal customers. Accurate, compassionate communication helps everyone plan their next step.
For practical strategies and compliance tips for business shutdowns, you can review guidance at BizSavvies. Their frameworks are aimed at reducing risk, supporting your team, and preserving brand value even in difficult transitions.
Conclusion: The Legacy of Drs. Foster & Smith
So, is Drs. Foster & Smith going out of business? Yes—the brand as pet owners knew it no longer operates, after closing in 2019. The company joined a long list of businesses reshaped by acquisitions and changing markets. Its story is a useful case study for founders and entrepreneurs about what happens when retail models fall out of favor and larger forces reshape the industry.
If you’re building (or exiting) a business, remember to plan proactively, communicate clearly, and always center the humans affected—both employees and customers. Ultimately, Drs. Foster & Smith’s journey reminds us that even well-loved, well-run companies may face major disruption. Market awareness, flexibility, and care in execution will always matter.
If your business faces tough changes, approach each step with clarity, empathy, and careful planning. You’ll help minimize risks, preserve relationships, and open doors to your next opportunity.
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