Leslie’s Files for Chapter 11, Announces Restructuring Plan
Leslie’s Inc. has filed for Chapter 11 bankruptcy protection as part of a prearranged restructuring plan designed to reduce its debt and provide additional capital while the pool and spa retailer continues operations.
The company entered into a restructuring support agreement with lenders holding more than 80% of its existing debt. Under the proposed transaction, Leslie’s expects to eliminate approximately $685 million, or 90%, of its outstanding funded debt and secure $150 million in new capital, including $90 million in new-money debtor-in-possession (DIP) financing and $60 million in equity financing.
Leslie’s filed its voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas. The company expects to emerge from the process in early 2027, at which point a group of its existing lenders is expected to hold a majority ownership stake.
“Today’s announcement marks an important milestone in our commitment to our customers and our business,” says Jason McDonell, CEO of Leslie’s. “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.”
Leslie’s says its stores and digital platforms will continue operating during the restructuring. The company also announced the closure of 76 stores as it works to adjust its retail footprint and says it will continue evaluating its real estate portfolio during the Chapter 11 process. Its remaining stores are expected to stay open.
For pool professionals who purchase through Leslie’s, the company says it plans to continue serving customers without interruption. Subject to court approval, Leslie’s also intends to continue paying employees, maintaining customer programs and honoring obligations to vendors. Gift cards and loyalty program benefits will continue to be honored.
In addition to the $90 million new-money DIP financing, Leslie’s is seeking court approval for a $225 million DIP asset-based financing facility to provide liquidity during the restructuring.
Founded in 1963, Leslie’s serves residential pool owners and pool professionals through more than 900 physical locations and its digital platform.
Additional information about the restructuring is available at lesliespool.com/our-future/.
