Leslie's files for chapter 11, closes 76 stores amid debt restructuring

Leslie's, Inc., a pool and spa care retailer, has filed voluntary chapter 11 bankruptcy petitions in the United States Bankruptcy Court for the Southern District of Texas as part of a prearranged restructuring plan supported by more than 80% of its existing lenders.

The company has entered into a Restructuring Support Agreement that includes $90 million in new-money debtor-in-possession financing and a $60 million equity financing, the latter fully backstopped by certain RSA parties. The agreement also provides for the elimination of approximately $685 million, or roughly 90%, of Leslie's outstanding funded debt.

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.

As part of the restructuring, Leslie's announced the closure of 76 stores. The company stated that all remaining locations continue to operate. Leslie's said it expects to emerge from chapter 11 in early 2027, at which point it anticipates being majority-owned by a group of its existing lenders.

"With a stronger balance sheet and greater financial flexibility, Leslie's can reinvest across the business to strengthen operating execution," said Jason McDonell, Chief Executive Officer of Leslie's.

The company said employee wages and benefits, customer gift cards, loyalty program benefits, and vendor obligations will continue to be honored during the proceedings. Leslie's operates more than 900 physical locations and a digital platform.

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