Pool supplies retailer files for bankruptcy, to close 76 stores

• Leslie's will reduce outstanding funded debt by approximately $685 million, representing a 90% reduction, through the restructuring
• The company secured $90 million in new debtor-in-possession (DIP) financing and $60 million in equity financing to continue operations during bankruptcy
• All remaining stores will stay open and customer programs, employee wages, and vendor obligations will continue to be honored without interruption

Summary: Leslie's Pool Supplies Files Chapter 11 Bankruptcy

Key Development:

Leslie's, the largest direct-to-consumer pool and spa care retailer in the United States, filed for Chapter 11 bankruptcy protection this week under a prearranged restructuring agreement with existing lenders. The company plans to close 76 stores while continuing operations and expects to emerge from bankruptcy in early 2027.

Financial Details:

• Debt Reduction: Approximately $685 million, representing 90% of outstanding funded debt
• New Financing: $90 million in debtor-in-possession (DIP) financing plus $60 million in equity financing
• Additional Credit: $225 million fully committed DIP asset-based financing facility from existing ABL lenders

Operational Impact:

The company will remain "fully operational" during restructuring, serving customers through both physical stores and digital platforms without interruption. All remaining stores will stay open, though the real estate portfolio will undergo evaluation during the Chapter 11 process. Customer programs, vendor obligations, and employee payments will continue as usual.

Management Statement:

CEO Jason McDonell emphasized the restructuring will provide "a stronger balance sheet and greater financial flexibility," enabling reinvestment to improve customer experience and operational execution both in-store and online.

Market Context:

The store closures follow an evaluation to better align the retail footprint with customer demand. Leslie's serves residential customers and pool professionals nationwide as the industry's leading direct-to-consumer brand. Upon emergence, existing lenders will hold majority ownership of the restructured company.