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Pool and spa service provider Leslie’s Inc. announced this week that it entered into a restructuring agreement with a group of its existing lenders and will close some stores while continuing to operate as it restructures through bankruptcy.
The company said that it filed voluntary petitions for prearranged Chapter 11 bankruptcy cases in federal court that will see it emerge under the majority ownership of the group of its existing lenders. Leslie’s said that it expects the process to move 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 Leslie’s CEO Jason McDonell.
“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.
BREAKFAST CHAIN FRANCHISEE FILES FOR BANKRUPTCY AS RISING COSTS, WEAK SALES WEIGH
Leslie’s said in its announcement that it’s the largest direct-to-consumer brand in the pool and spa care industry, serving residential customers and pool professionals around 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 in conjunction with the restructuring after an evaluation of how to best align its store network with customer demand.
OUTDOOR RETAILER CLOSING NEARLY 60 STORES AMID BANKRUPTCY
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LESL | LESLIE’S INC. | 0.15 | -0.02 | -13.27% |
Leslie’s other remaining stores will remain open and fully operational as the company continues to evaluate its real estate portfolio during the Chapter 11 process.
All gift cards and loyalty program benefits will also continue to be honored.
Leslie’s said that the restructuring agreement includes commitments for $90 million of new-money debtor-in-possession (DIP) financing, and a $60 million equity financing.
SAKS EMERGES FROM BANKRUPTCY WITH A NEW NAME AND A LEANER STORE FOOTPRINT
The company 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.
It said there will be a reduction of about $685 million, or 90%, of the company’s outstanding funded debt.
Leslise’s said that it also filed a series of customary first day motions to allow it to continue to pay wages and benefits as usual, maintain customer programs, honor obligations to vendors, and obtain other relief measures that are common under these circumstances.
