Leslie's filed for Chapter 11 bankruptcy protection on Sept. 30, 2026, in the U.S. Bankruptcy Court for the Southern District of Texas, after reporting $1.21 billion in liabilities against $722.2 million in assets. The pool-supply retailer plans to eliminate $685 million of funded debt, roughly 90% of its outstanding funded debt, under a restructuring agreement backed by more than 80% of existing lenders. Leslie's expects existing lenders to become its majority owners if the court approves the deal and aims to emerge from Chapter 11 (a court-supervised restructuring process) in early 2027. The company said all stores remained open as of Oct. 1 and that customers could continue using gift cards, making returns and store-credit transactions, and shopping through its physical and digital channels. Earlier in fiscal 2026, Leslie's announced approximately 80 store closures and shut its Illinois distribution center to reduce costs. It has not disclosed the list of 76 additional stores. The company is seeking $90 million in debtor-in-possession financing and a fully committed $225 million asset-based facility from existing lenders, while the filing summary also cites $60 million in equity financing. Leslie's operates in a competitive market that includes independent retailers, Home Depot, Lowe's, Walmart, Costco and Amazon. The company says in-store water testing, expert advice, customized chemical recommendations and products subject to shipping restrictions remain advantages, but online and mass-market competition has made many pool supplies easier to find. Sales and traffic weakened before the filing, while consumer caution around discretionary spending added pressure to the business.