Leslie’s, Inc., the pool-supply retailer, filed a prearranged Chapter 11 case on September 30, 2026, in the U.S. Bankruptcy Court for the Southern District of Texas. It closed 76 underperforming U.S. stores on September 29, and its shares leave the Nasdaq on October 6, when trading moves to the over-the-counter market. The company says its remaining stores keep operating while it restructures.
For shoppers holding a gift card, store credit or a deposit on an order, the practical question is what happens to that balance. The company has answered part of it.
A prearranged filing backed by lenders
The case follows a company announcement relayed by TipRanks describing a restructuring support agreement with lenders holding about 81 percent of the term loan. The plan aims to eliminate roughly 90 percent of the company’s funded debt, and plan confirmation is targeted within about 100 days, with emergence planned for early 2027.
Financing is lined up to carry the business through the case: a $90 million term loan and a $225 million asset-based facility, both debtor-in-possession loans. A separate $60 million equity commitment is part of the package. Hoodline reported the funded debt at about $685 million, a nine-month net loss of $87.7 million and a going-concern warning issued in August.
Existing shareholders fare worst. Under the plan described in the announcement, current equity is cancelled with no consideration, existing lenders receive majority ownership and new debt in the reorganized company, and unsecured creditors share a cash pool.
Seventy-six closures and a count that is not settled
The announcement puts the closures at 76 stores on September 29, a day before the filing. The company’s own Business Wire release says only that Leslie’s “today announced the closure of 76 stores” as part of an evaluation of its footprint.
How many stores remain is reported inconsistently. TipRanks cites more than 850 stores before the closures, while Hoodline says the chain kept over 900 locations afterward. Because the two accounts conflict and the company’s investor-relations page does not carry the filing release, no total is stated here. Hoodline adds that Leslie’s closed 80 stores in December 2025, so the latest round follows an earlier one.
Delisting on October 6
According to the announcement, Nasdaq issued its notice on September 25, and the delisting takes effect October 6, 2026, with the stock moving to over-the-counter trading. The company cautions that there is no assurance of liquidity in that market. With existing equity slated for cancellation, shareholders should not expect the over-the-counter listing to preserve value.
What the company says about gift cards
Chief Executive Jason McDonell framed the filing as a step toward a sturdier company. “Leslie’s is here to stay,” he said in the release, adding that a stronger balance sheet would let the chain “reinvest across the business to strengthen operating execution and deliver an even better experience for our customers, both in-store and online.”
The release also makes a direct promise to consumers: “All gift cards and loyalty program benefits will continue to be honored.” The TipRanks account similarly says the company intends to maintain customer programs, along with paying wages, benefits, taxes, insurance and critical vendors in the ordinary course.
That is the extent of what the sources say. Neither the release nor the TipRanks account addresses store credit from returns, deposits on special orders, or warranties on equipment already sold, and no court order on customer programs was available for this report. Holders of those items have no sourced answer here, and the company’s information line is the place to ask. The release lists Kroll as claims agent, with a restructuring page at lesliespool.com/our-future/, a U.S. and Canada phone line at (844) 408-3397 and an email address, LesliesPoolInfo@ra.kroll.com.
Closed stores raise a separate practical point. The release does not say whether gift cards and credits can be used at the 76 locations that shut, or how returns at those sites will be handled. Shoppers with a balance at one of those stores may need to use the cards online or at an open location, a detail for the company to confirm.
What the filing leaves open
The company’s investor-relations page listed no Chapter 11 release when the sources were checked, and its newest item was the August 12 third-quarter results. The plan still needs court confirmation, and the terms described above are targets rather than approved outcomes. Further notices, including any customer-program order from the Southern District of Texas, will define what holders of unused balances can count on.
Until then, the firmest customer-facing commitment on the record is McDonell’s sentence about gift cards, published in the company’s September 30 release.
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This article was produced with AI assistance and checked against the primary sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
