Leslie’s, one of the largest pool supply companies in the U.S., filed for Chapter 11 bankruptcy last week and has been forced to shutter 76 of its stores nationwide, including eight locations throughout the Bay Area. The Phoenix, Arizona-based chain announced in a Sept. 30 news release that it is entering a Restructuring Support Agreement to eliminate approximately 90% of debt and secure $150 million of new capital, with the goal of reemerging from bankruptcy in early 2027.
CEO Jason McDonell said the news marks an important milestone in the company’s commitment to its customers and business. With a stronger balance sheet and greater financial flexibility, he added, Leslie’s can reinvest across the business to strengthen operating execution and deliver an even better experience for customers, both in-store and online. The company filed voluntary petitions for prearranged Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas, reporting $722 million in assets and $1.2 billion in liabilities. It expects to emerge under the majority ownership of a group of its existing lenders.
Court documents filed in Texas and reviewed by SFGATE, first shared by KTVU-TV, show the Bay Area closures already implemented. They include stores in Concord, Fremont, Novato, Mountain View, Pittsburg, San Jose, San Ramon, and Walnut Creek. The chain, founded by Phil Leslie Jr. in 1963 with its first location in North Hollywood, has also announced 18 other store closures across California.
Those additional California closures span communities from Cerritos and Chatsworth to Fresno, San Diego, Santa Barbara, and Tustin. Leslie’s said the restructuring agreement includes commitments for $90 million of new-money debtor-in-possession financing and a $60 million equity financing. The company also filed motions seeking approval of the $90 million DIP facility and a fully committed $225 million DIP asset-based financing facility from its existing ABL lenders. The deal will reduce about $685 million, or 90%, of the company’s outstanding funded debt.
Leslie’s now operates more than 900 retail locations across 38 states, down from its peak of 1,000 stores in 2023. The company said remaining stores will stay open and fully operational as it evaluates its real estate portfolio during the Chapter 11 process. Gift cards and loyalty program benefits will continue to be honored. Bay Area locations in Antioch, Fairfield, Lafayette, Danville, Napa, Livermore, Pleasant Hill, San Carlos, San Jose, Vacaville, Santa Rosa, Tracy, Gilroy, and Pleasanton will continue operation as usual, the company said.
In its nine months ending July 4, 2026, Leslie’s reported $790 million in sales, a decline of 7.3% compared with nearly $853 million in the prior-year period. Net losses grew 18.2% to $87.7 million compared with a loss of $74.2 million in the prior-year period. In July, the company withdrew its financial guidance for the full year, citing macroeconomic softness and the uncertainty around the company’s ability to continue to drive consumer behavior.
