Pool supplies firm Leslie's files for bankruptcy amid sales slump
LESL•Leslie's filed for Chapter 11 bankruptcy and entered a debt restructuring agreement with lenders. Creditors will provide $90 million in loans and $60 million in equity financing, while about $685 million, or roughly 95% of existing debt, will be foregone.
1. Restructuring terms
The Phoenix-based pool supplies and service provider expects to emerge from bankruptcy proceedings in early 2027. It has closed 76 stores, and its lenders are expected to take majority control.
2. Falling sales
For the nine months ended June 28, sales fell 7.3% to $790.4 million, while adjusted loss per share narrowed to $7.13 from $8.55 a year earlier. Leslie's reported falling revenue from 2023 to 2025 and annual losses in the last two years.
3. Outlook withdrawn
The company withdrew its full-year sales and core profit forecasts after its third-quarter earnings report in August, citing uncertainty about its ability to drive consumer behavior. The article says inflationary pressure and higher mortgage rates have pressured US homebuilders and subdued demand for new pools and related services.
