Leslie's laid out a restructuring that would reduce debt by about $685 million and shift control to its creditors, pointing to mounting challenges across its industry. In court filings, the company put its assets in the $500 million to $1 billion band, with liabilities listed at $1 billion to $10 billion.
A restructuring support agreement includes commitments for $90 million in new money debtor-in-possession financing alongside the proposal would reduce the debt load by roughly 90%. Bloomberg previously reported the company had been in talks with Grey Helm Capital, Axar Capital Management, Cerberus Capital Management, and Contrarian Capital Management to finalize a plan transferring control to them after an earlier effort to extend debt maturities fell through.
Leslie's said it will keep operating in the ordinary course during the process and "remains committed to honoring its obligations to employees, partners, and vendors and delivering for its customers without disruption," according to a Wednesday statement. The company announced 76 store closures and said it will continue reviewing its real estate to align its footprint with long-term business needs. It is targeting an emergence from bankruptcy in early 2027.
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On an August earnings call, CEO Jason McDonell said Leslie's was evaluating strategic options to add financial flexibility and support sustainable growth. In a separate filing, the company withdrew its prior full-year outlook, pointing to "macroeconomic softness." More broadly, the pool industry has faced disruptive weather, rising input expenses, and shoppers squeezed by inflation.
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