U.S. Pool Supply Giant Leslie's Files for Chapter 11 Bankruptcy Protection
Leslie's, the largest U.S. pool supply retail chain, filed for Chapter 11 bankruptcy. The firm will wipe out $685 million in debt, close 76 stores, and secure $150 million in new financing.
Leslie's, the largest U.S. retail chain for swimming pool supplies and services, has filed for Chapter 11 bankruptcy protection. Founded in 1963 in a California backyard and growing into an empire of over 900 stores across 37 states, the company succumbed to severe liquidity distress and signed a dramatic debt restructuring agreement.
The financial crisis facing the company, traded on Wall Street under the ticker LESL, led to painful measures, most notably the immediate closure of 76 of its stores. Under the rescue plan, approximately $685 million—representing about 95% of the network's existing debt—will be wiped out, and lenders will receive majority control of the company's shares in return.
To provide the company with financial oxygen until its planned exit from bankruptcy proceedings in early 2027, creditors will inject $90 million in new loans alongside $60 million in equity financing. The chain, which employs about 3,800 workers and offers over 30,000 different products, will continue operating its remaining stores and digital trade arms.
How did an empire that once generated between $1.2 billion and $1.4 billion annually reach this state? The company explains that inflationary pressures, exacerbated by the war involving Iran, alongside high U.S. mortgage rates, crushed home contractors and led to a sharp drop in demand for new pools and their maintenance.
The numbers in the reports speak for themselves: following a continuous decline in revenues between 2023 and 2025, the company posted a 7.3% drop in sales last quarter to $790.4 million. The adjusted loss per share stood at $7.13 (compared to a loss of $8.55 last year), and last August, the company was forced to completely cancel its full-year revenue and profit forecasts.
