Leslie's Inc. filed prearranged Chapter 11 cases on Sept. 30, 2026, in the U.S. Bankruptcy Court for the Southern District of Texas, reporting $1.21 billion in liabilities and $722.2 million in assets. A restructuring agreement supported by more than 80% of existing lenders would eliminate about $685 million, or 90%, of funded debt and is expected to transfer majority ownership to existing lenders if approved. Leslie's is seeking $90 million in new-money debtor-in-possession financing, $60 million in equity financing and a fully committed $225 million asset-based debtor-in-possession facility. The company said all stores and digital platforms remained operational as of Oct. 1, with customers still able to use gift cards, make returns and conduct store-credit transactions. Leslie's has not disclosed the 76 additional stores targeted for closure; earlier in fiscal 2026, it announced approximately 80 underperforming store closures and shut an Illinois distribution center. The company aims to emerge in early 2027, while weaker sales, reduced traffic, consumer caution and competition from independent retailers, Home Depot, Lowe's, Walmart, Costco and Amazon have pressured the business. CEO Jason McDonell said, "Leslie's is here to stay."