Leslie's begins closing 76 stores under Chapter 11 plan

Closures start with California and Texas

California accounts for 26 of the 76 closures [3][6]. That is the largest share of any single state [3]. Eight of those stores are in the Bay Area: Concord, Fremont, Novato, Mountain View, Pittsburg, San Jose, San Ramon and Walnut Creek [6].

Texas takes the next visible bite. Eight Houston-area stores are on the closure list, according to a lease rejection motion the Houston Chronicle reported on 2 October [4].

For pool owners in those metros, the practical effect is distance: fewer counters for chemicals, pumps and parts, and longer drives for service [3][6]. Competitors and landlords get a weakened Leslie's rather than a vanished one, because the remaining stores stay open [1]. The closing date for each store remains unknown [2][4].

The California list runs from the Bay Area to Southern California and the Central Valley, with stores in Fresno, Los Banos, Paso Robles, Selma and Tulare [3]. The cuts reach inland communities where backyard pools are common and summer heat is severe [3]. Florida and Texas carry the next largest groups, according to documents filed in court [8]. The filings mark three Arizona stores in Phoenix and Tempe as already closed [7][8]. In Connecticut, the Derby store has already shut, CT Insider reported on 1 October [5].

Florida has a long list of its own. The filings list stores in Brandon, Clearwater, Gainesville, Lehigh Acres, Orlando, Port Charlotte, Sarasota, Tallahassee, Tampa and Tarpon Springs, and mark several Miami-area locations as already closed [7].

Debt cut and lender control

The restructuring support agreement with a group of existing lenders would wipe out roughly $685 million, or 90%, of Leslie's outstanding funded debt [1][2][7]. It carries $90 million of new-money debtor-in-possession financing and $60 million of equity financing, and some of the lenders fully backstop the equity [1][7]. Leslie's also asked the court to approve a $225 million DIP asset-based facility from its existing ABL lenders [1]. Rolling Out summed the new money as $150 million in new capital [6]. The lenders are expected to take majority ownership of the company [1][2].

The Chapter 11 case sits in the bankruptcy court in Houston, where Leslie's filed its petition [4][7]. The petitions came from Leslie's and nine subsidiaries, including Leslie's Poolmart, Horizon Spa & Pool Parts and RAM Chemical & Supply, a company document on the SEC's website says [7].

The balance sheet explains the urgency. Leslie's listed more than $1.2 billion in debt against $722 million in assets as of early July, CT Insider reported [5]. Trade creditors range from $9.3 million owed to pool sanitizer supplier GLB to $730,000 owed to Google, the same report said [5].

A smaller chain after a pandemic boom

Leslie's was founded in 1963 [4][5][6]. It peaked at 1,000 locations in 2023 and now runs about 900, Rolling Out reported [6]. L Catterton, the Greenwich-based private equity firm, bought the business in 2017 and took it public in October 2020 [5]. The company calls itself the largest direct-to-consumer brand in pool and spa care [1]. It listed 13 Connecticut stores after the Derby closure, CT Insider reported [5].

Reports disagree on the current footprint. CT Insider put the chain at about 900 stores in 38 states and roughly 3,500 employees, about 3,000 of them in retail [5]. Rolling Out said 37 states [6].

CFO Jeff White blamed a demand contraction that began in 2023, after the pandemic pushed homeowners to invest in backyards [5]. In a court filing he cited high interest rates, high inflation, uncertain tariffs, declining consumer purchasing power and consumer confidence [5]. Weather in key markets also hurt [5].

What customers keep

Leslie's says remaining stores stay open [1]. The company will still honor gift cards and loyalty benefits [1]. It describes itself as fully operational in stores and online [1][2].

Customers at closing locations have to move accounts and loyalty balances to a nearby store, Rolling Out reported [6]. The full closure list appears at lesliespool.com/stores [6]. The company says it is not shutting down entirely and expects to emerge with a smaller retail footprint [3]. Shoppers near a closing store should check for another Leslie's location and watch for liquidation sales [3].

What happens next

Leslie's aims to exit Chapter 11 in early 2027 [1][2][6]. CEO Jason McDonell said the process should leave the chain with a stronger balance sheet and more financial flexibility [1][2]. "Leslie's is here to stay," he said in a statement [1].

The company filed first-day motions to keep paying wages and benefits and to honor vendor obligations while the case runs [1]. A judge must still approve the plan [5]. Leslie's says it will keep evaluating its real estate during the case [1]. Whether more stores follow depends on that review [1].