After 80 stores close, 63-year-old chain gives Chapter 11 warning
Leslie's Pool Supply, a 63-year-old chain, is facing financial challenges after closing 80 locations. The company reported positive Q2 results but still faces a possible Chapter 11 filing.
Intelligence analysis by Llama
Leslie's Pool Supply, a 63-year-old chain, is struggling financially after closing 80 locations. The company reported positive Q2 results but still faces a possible Chapter 11 filing.
Imagine you have a store that sells pool supplies, but people aren't buying as much as they used to. You can try to cut expenses and close underperforming stores, but if customers aren't buying, it's hard to keep the doors open. That's what's happening to Leslie's Pool Supply, a 63-year-old chain that's been struggling financially.
Analysis
A $60B Vote of Confidence
Leslie's Pool Supply, a 63-year-old chain, has been struggling financially after closing 80 locations. The company reported positive Q2 results, but the numbers were not enough to stem the bleeding. Leslie's has been facing financial challenges for some time, with its stock performance under pressure throughout 2025. The company's removal from the S&P SmallCap 600 index earlier this year was a clear sign that investors have lost confidence in the company.
Why Cursor?
Leslie's has been trying to cut expenses and close underperforming stores, but it hasn't been enough to turn the company around. The company has moved more of its sales to a digital model after closing the stores mentioned above, but it's still not enough to offset the decline in sales. Leslie's has a $756 million term loan due in 2028 that is being quoted at about 39 cents on the dollar, which is a significant burden for the company.
The Road Ahead
Leslie's is reportedly talking about Chapter 11, but no final decision has been made. The company has brought on Centerview Partners LLC and Simpson Thacher & Bartlett to advise the company through the debt negotiations. A group of creditors hired Houlihan Lokey and Akin Gump Strauss Hauer & Feld. Leslie's has a long history of providing pool supplies to consumers, but its financial struggles are a concern for the retail industry.
Key points
- Leslie's Pool Supply has closed 80 locations and is facing financial challenges.
- The company reported positive Q2 results but still faces a possible Chapter 11 filing.
- Leslie's has a $756 million term loan due in 2028 that is being quoted at about 39 cents on the dollar.
- The company is reportedly talking about Chapter 11 but no final decision has been made.
If Leslie's Pool Supply can successfully restructure its debt and turn its business around, it could potentially recover and continue to provide pool supplies to consumers.
If Leslie's Pool Supply is unable to restructure its debt and turn its business around, it could potentially file for Chapter 11 bankruptcy and cease operations.