Phocarctos hookeri has been threatened by commercial squid fisheries since the 1970s. Incidental catch within fishing nets is high compared to the small population size. There is a 2.4 per cent female mortality relating to incidental catches. There is also a high juvenile mortality caused by the presence of rabbit burrows.
There are, at most, between 10,000 and 15,000 Phocarctos hookeri in existence.
Phocarctos hookeri is considered by the IUCN as "Vulnerable".