Pool and Spa Care Chain Leslie’s Files for Chapter 11, Plans to Close 76 Stores

Pool and spa service provider Leslie’s Inc. announced this week that it has entered into a restructuring agreement with a group of its existing lenders, filing for Chapter 11 bankruptcy while planning to close 76 stores as it seeks to streamline its operations.

The company filed voluntary petitions for prearranged Chapter 11 bankruptcy cases in federal court, a process it expects to complete efficiently with the goal of emerging in early 2027 under the majority ownership of its existing lenders.

“Today’s announcement marks an important milestone in our commitment to our customers and our business,” said Leslie’s CEO Jason McDonell.

A man cleans the pool in his backyard. (Getty Images)

“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 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,” McDonell added.

As the largest direct-to-consumer brand in the pool and spa care industry, Leslie’s serves residential customers and pool professionals nationwide. The company emphasized that it remains fully operational and committed to serving customers without interruption across both its physical stores and digital platforms.

The planned closure of 76 stores is part of a strategic evaluation to better align the company’s store network with customer demand. Leslie’s remaining stores will remain open and fully operational as the company continues to assess its real estate portfolio during the Chapter 11 process. All gift cards and loyalty program benefits will continue to be honored.

The restructuring agreement includes commitments for $90 million of new-money debtor-in-possession (DIP) financing, alongside a $60 million equity financing. The company has also filed motions seeking approval for a $90 million DIP facility and a fully committed $225 million DIP asset-based financing facility from its existing asset-based lenders.

A man uses tools to clean a pool. (Getty Images)

Under the proposed restructuring, the company anticipates a reduction of approximately $685 million, or 90%, of its outstanding funded debt. Leslie’s also filed a series of customary first-day motions to ensure the continuation of employee wages and benefits, customer programs, and vendor obligations during the transition.

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