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Pool and spa service provider Leslie’s Inc. announced this week that it has reached a restructuring agreement with a group of its existing lenders and will close some stores while continuing operations during its restructuring through bankruptcy.
The company said it has filed voluntary petitions for prearranged Chapter 11 bankruptcy cases in federal court that would see it emerge under majority ownership of its existing lenders group. Leslie’s said it expects the process to move forward efficiently and indicated its goal is to emerge from Chapter 11 in early 2027.
“Today’s announcement marks an important milestone in our commitment to our customers and our business,” said Jason McDonell, CEO of Leslie.
A man cleans the swimming pool in his garden. (Getty Images)
“With a stronger balance sheet and greater financial flexibility, Leslie’s can reinvest across the business to strengthen operational 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,” added McDonell.
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Leslie’s said in its announcement that it is the largest direct-to-consumer brand in the pool and spa care industry, serving residential and pool professional customers across the country – noting that it “remains fully operational and committed to serving customers without interruption, including through its physical stores and digital platforms.”
The company announced the closure of 76 stores as part of the restructuring after an assessment of how best to align its store network with customer demand.
OUTDOOR RETAILER CLOSES NEARLY 60 BANKRUPT STORES
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| LESL | LESLIE’S INC. | 0.15 | -0.02 | -13.27% |
The remaining remaining Leslie stores will remain open and fully operational as the company continues to evaluate its real estate portfolio during the Chapter 11 process.
All gift card and loyalty program benefits will also continue to be honored.
Leslie’s said the restructuring deal includes commitments for $90 million in debtor-in-possession (DIP) financing and $60 million in equity financing.
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The Company has filed motions seeking approval of the $90 million DIP facility and a fully committed $225 million DIP asset-based financing facility from its existing ABL lenders.
A man uses tools to clean a swimming pool. (Getty Images)
It said there would be a reduction of about $685 million, or 90 percent, in the company’s outstanding funded debt.
Leslise’s said it also filed a series of customary day one motions to allow it to continue paying salaries and benefits as usual, maintain customer programs, honor its obligations to suppliers and obtain other relief measures common in these circumstances.
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