Leslie’s files for Chapter 11 with plan to cut funded debt by about 90%
LESL•Leslie’s filed prearranged Chapter 11 petitions and plans to cut about $685 million, or roughly 90%, of its funded debt. The package includes $150 million in new capital, and the company expects to emerge in early 2027 after closing 76 stores.
1. Restructuring plan
Leslie’s filed voluntary, prearranged Chapter 11 petitions in the Southern District of Texas under a restructuring support agreement. The plan targets eliminating about 90% of funded debt, cutting roughly $685 million from outstanding borrowings, and includes $150 million of new capital: $90 million in new-money debtor-in-possession financing and $60 million in equity financing. The company also sought court approval for a separate $225 million DIP asset-based financing facility to support liquidity during the process.
2. Expected emergence
Management expects Leslie’s to emerge in early 2027, with existing lenders set to become majority owners. The company announced 76 store closures.
