Pool supplies retailer Leslie’s files for bankruptcy; closing some stores
Leslie’s Inc. has filed for bankruptcy as it looks to slash its debt amid a sales slump.
The country's largest retailer of pool and spa supplies and related products filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas as part of a prearranged restructuring support agreement that has the support of more than 80% of its existing lenders. The agreement provides for the elimination of approximately $685 million, or roughly 90%, of Leslie's outstanding funded debt.
In addition, the agreement includes $90 million in new-money debtor-in-possession financing and a $60 million equity financing, the latter fully backstopped by certain RSA parties.
As part of the restructuring, Leslie's, which has more than 900 locations across 38 states, announced the closure of 76 stores, with all remaining stores remaining open and fully operational. The company did not rule out future closings, saying that, during the bankruptcy process, it will continue to evaluate its real estate portfolio “to better align its footprint with the long-term needs of the business.”
Leslie's has also filed a motion seeking approval of a fully committed $225 million DIP asset-based financing facility from its existing ABL lenders. Combined, these facilities are intended to fund operations during the Chapter 11 process. The company expects to emerge from bankruptcy in early 2027.
The filing was not unexpected. In an August filing with the SEC, Leslie’s said it faced a “persistently challenging retail environment” and warned that bankruptcy could become necessary if it was unable to restructure or refinance its debt.
For its third quarter, ended July 4, Leslie's revenue fell 8.4% to $458.5 million. Comparable sales fell 6.2%. For the first nine months of fiscal 2026, the company reported a net loss of $87.7 million.
"With a stronger balance sheet and greater financial flexibility, Leslie's can reinvest across the business to strengthen operating execution and deliver an even better experience for our customers, both in-store and online," said Jason McDonell, CEO of Leslie's. “Leslie’s is here to stay, and I am deeply grateful to our employees, customers, and partners for their continued support as we work to position Leslie’s for a strong future.”
Founded in 1963, Leslie's serves the aftermarket needs of residential and professional consumers with an extensive and largely exclusive assortment of essential pool and spa care products.
Advisors
Simpson Thacher & Bartlett LLP and Haynes and Boone, LLP are serving as legal advisors, with BRG, LLC is serving as financial and restructuring advisor. Centerview Partners LLC is serving as investment banker, and C Street Advisory Group is serving as strategic communications advisor to the company.