Article
Leslie’s Weighing Restructuring Options, Including Potential Bankruptcy Filing
By: Harvard Zhang
Leslie’s is weighing restructuring options, including a potential chapter 11 filing, as subdued demand across the industry puts pressure on the company’s liquidity, according to sources.
No decision about a transaction has been made, the sources cautioned.
The publicly traded pool supplies and services provider said on an earnings call in May that it is evaluating capital structure opportunities and it has been in discussions with existing and prospective lenders. The company’s stock traded today at $5.84 with a market cap of roughly $55 million.
Leslie’s has been contending with a pullback in demand after a surge during the Covid pandemic, when people spent more on pool upgrades.
According to Octus analysis, Leslie’s does not generate enough unlevered cash flow to service its interest obligation, while the company likely has to deal with its March 2028 term loan maturity before its internal restructuring is tested at scale.
Leslie’s is in its peak season and is expected to report fiscal third-quarter earnings next month. The company’s earnings showed signs of improvement in the fiscal second quarter after implementing cost-cutting initiatives including closing stores. The company suffered from unfavorable weather and fierce competition last year during peak selling season.
The company had $97.1 million of total liquidity as of April.
Leslie’s is working with Simpson Thacher as legal advisor, according to sources, while an ad hoc group of term lenders is represented by Akin Gump as legal advisor and signed a cooperation agreement, as reported.
An estimate of the company’s capital structure as of April 4, 2026, is below:
Leslie’s, Simpson Thacher and Akin Gump did not respond to requests for comment.
This publication has been prepared by Octus Intelligence, Inc. or one of its affiliates (collectively, "Octus") and is being provided to the recipient in connection with a subscription to one or more Octus products. Recipient’s use of the Octus platform is subject to Octus Terms of Use or the user agreement pursuant to which the recipient has access to the platform (the “Applicable Terms”). The recipient of this publication may not redistribute or republish any portion of the information contained herein other than with Octus express written consent or in accordance with the Applicable Terms. The information in this publication is for general informational purposes only and should not be construed as legal, investment, accounting or other professional advice on any subject matter or as a substitute for such advice. The recipient of this publication must comply with all applicable laws, including laws regarding the purchase and sale of securities. Octus obtains information from a wide variety of sources, which it believes to be reliable, but Octus does not make any representation, warranty, or certification as to the materiality or public availability of the information in this publication or that such information is accurate, complete, comprehensive or fit for a particular purpose. Recipients must make their own decisions about investment strategies or securities mentioned in this publication. Octus and its officers, directors, partners and employees expressly disclaim all liability relating to or arising from actions taken or not taken based on any or all of the information contained in this publication. © 2026 Octus. All rights reserved. Octus(TM) and the Octus logo are trademarks of Octus Intelligence, Inc.