Leslie's says it filed voluntary prearranged Chapter 11 petitions and will close 76 stores as part of a debt-reduction plan. The company will obtain $90 million DIP financing, $60 million equity financing, and a $225 million ABL DIP facility, targeting a roughly $685 million debt reduction (about 90%). Management aims to emerge from Chapter 11 in early 2027 while maintaining operations.
Leslie’s Inc. is reportedly preparing Chapter 11 protection with ~$100 million in debtor-in-possession financing and a debt-for-equity swap on roughly $750 million of obligations. The move follows a going-concern warning amid liquidity strain and a pandemic-era excess footprint, including the closure of about 80 stores. The outcome hinges on the restructuring terms and control of the company’s equity.
Leslie's shares soared after reporting better-than-expected Q1 revenue and improved margins. The company's strong guidance for fiscal 2026 and an 8% increase in customer transactions suggest a robust recovery, providing a solid foundation for future growth.
Leslie's reported Q4 earnings of 9 cents vs. $1.29 expected. Sales of $389.206 million surpassed expectations of $370.635 million. Plans to close 80-90 underperforming stores to streamline operations. FY2026 sales guidance is lower than market estimates. Stock plummeted 14.3% following the mixed financial results.
