Leslie's Inc. Files for Bankruptcy and Closes 76 Stores

Leslie's Inc., the largest direct-to-consumer pool and spa care retailer in the United States, filed for prearranged Chapter 11 bankruptcy protection on September 30 in the U.S. Bankruptcy Court for the Southern District of Texas. The Phoenix-based company reported $1.2 billion in liabilities against $722 million in assets, following a 7.3% decline in sales to $790 million for the nine months ending July 4, 2026, and net losses that rose to $87.7 million.

As part of a restructuring agreement with existing lenders, the company will close 76 stores nationwide to align its network with customer demand. These closures include 26 locations in California—split between the Bay Area, Southern California, and the Central Valley—and 19 stores across Florida, including sites in Miami, Orlando, Tampa, and West Palm Beach. The remaining locations and digital platforms will continue to operate.

To facilitate the reorganization, the company secured $90 million in new-money debtor-in-possession financing, $60 million in equity financing, and a $225 million asset-based financing facility. This plan is expected to reduce outstanding funded debt by approximately $685 million, or 90%.

CEO Jason McDonell stated that the company is not going out of business and expects to emerge from bankruptcy by early 2027. The company intends to honor all vendor obligations, loyalty benefits, and gift cards during the process.