Leslie’s Inc., the nation’s largest pool and spa supply retailer, filed for Chapter 11 bankruptcy protection this week as part of a prearranged restructuring agreement with a group of its existing lenders.
The company announced it will close 76 stores as part of the restructuring, following an evaluation of its store network and customer demand. Its remaining locations will stay open and fully operational while the company continues to review its real estate portfolio during the bankruptcy process.
According to Leslie’s, it expects to emerge from Chapter 11 in early 2027 majority-owned by its existing lenders, Fox Business reported.
“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,” CEO Jason McDonell said in a statement, per Spa Retailer.
The restructuring includes $90 million in new debtor-in-possession financing, $60 million in equity financing and a fully committed $225 million debtor-in-possession asset-based lending facility from existing lenders. Leslie’s said the restructuring will reduce its outstanding funded debt by approximately $685 million, or 90%.
The company said gift cards and loyalty program benefits will continue to be honored. Leslie’s also filed motions seeking court approval to pay employee wages and benefits, honor vendor obligations and maintain customer programs during the restructuring process.
