Leslie’s enters prearranged chapter 11 to cut debt

What happened

Leslie's, Inc. (NASDAQ: LESL) said September 30, 2026 that it entered a restructuring support agreement and filed prearranged chapter 11 cases.

The plan would cut 90% of debt and bring $150 million of new capital. That includes $90 million of new-money DIP financing and $60 million of equity financing.

Leslie's said the agreement has support from over 80% of existing lenders. It also said operations will continue in the ordinary course while the chapter 11 process proceeds.

The company said it closed 76 stores and will keep reviewing its real estate portfolio to better match the footprint with long-term business goals.

Leslie's said all remaining stores outside those recently closed remain open and fully operational, and that it will keep honoring employee, vendor and customer obligations.

First-day motions seek approval to keep paying wages and benefits, maintain customer programs and preserve access to other relief measures common in chapter 11 cases.

Leslie's said it expects to emerge from chapter 11 in early 2027.

Key numbers

Metric	Latest	Change	Source
Debt to be eliminated	approximately 90%		SEC 8-K Exhibit 99.1
New capital	$150 million		SEC 8-K Exhibit 99.1
Stores closed	76 stores		SEC 8-K Exhibit 99.1
Sales	$1.02 billion	from $1.11 billion, -8.3%	SEC 8-K Exhibit 99.2
Gross profit	$326.6 million	from $392.1 million, -16.7%	SEC 8-K Exhibit 99.2
EBITDA	$10.3 million	from $55.0 million, -81.3%	SEC 8-K Exhibit 99.2

Read more: Leslie's (LESL) stock analysis and investment case

Why it matters

OptimistFi's case is that Leslie's is a leveraged turnaround on whether its national pool-care specialty model can stop share and margin erosion after the post-pandemic reset.

This filing moves that turnaround into a court-supervised balance-sheet reset while leaving the operating repair story in place.

In the YTD August 2026 update, sales were $1.02 billion versus $1.11 billion, gross profit was $326.6 million versus $392.1 million, and EBITDA was $10.3 million versus $55.0 million.

OptimistFi's calculation shows EBITDA fell 81.3% year over year.

Leslie's says the DIP financing should provide sufficient liquidity through chapter 11.

The store closures and the planned footprint review show management is still trying to align costs with demand, but the filing itself keeps the recovery case open rather than settled.

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What's next

Leslie's expects to move through the process efficiently and emerge from chapter 11 in early 2027.

The company also said it expects to be under the majority ownership of a group of existing lenders upon emergence.

Court approval of the first-day motions and financing would support that timetable, while delays would weaken it.

Leslie's said it will continue to evaluate its real estate portfolio through chapter 11.

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