Pool supplies retailer files for bankruptcy and will close 76 locations

Leslie’s Inc., a leading provider of pool and spa services, has announced its intention to undergo a restructuring process through Chapter 11 bankruptcy. The company has entered into a prearranged agreement with a group of its existing lenders that will pivot towards a more sustainable financial future. As part of this restructuring effort, Leslie’s disclosed that it would be closing approximately 76 of its retail locations while maintaining operations at remaining stores during the transition.

In a recent announcement, Leslie’s filed voluntary petitions in federal court as part of the Chapter 11 process, which is aimed at allowing the company to emerge with improved financial health, majority ownership resting with its lenders. The company projects that this restructuring initiative can be executed efficiently, with plans to emerge from bankruptcy by early 2027.

Executive leadership at Leslie’s highlighted the significance of this move, affirming the company’s commitment to customers and operational viability. A robust financial restructuring is anticipated to facilitate reinvestment in various facets of the business, enhancing both in-store and online customer experiences. Leslie’s also aims to appreciate the loyalty of its customer base and employees throughout this challenging period.

The restructuring agreement encompasses commitments of new financing resources, including a million debtor-in-possession (DIP) facility and an additional million equity financing package. These financial maneuvers are expected to reduce Leslie’s outstanding debt by approximately 5 million—a considerable cut of nearly 90%—an essential step toward restoring operational viability and financial stability.

Despite the impending store closures, Leslie’s has assured its clientele that services would proceed without interruption through existing physical locations and its digital platforms. All gift cards and loyalty program benefits will continue to be honored, ensuring a seamless transition for customers.

As Leslie’s navigates this restructuring process, it intends to meet its obligations to employees, customers, and vendors, ensuring that wages and benefits remain unaffected while upholding customer programs. The strategic realignment of its business operations signifies a crucial moment for Leslie’s as they reshape their business model to adapt to evolving market demands.

#business #politics #entertainment #technology #environment