Leslie's is reportedly preparing to file for Chapter 11 bankruptcy and hand over control of the business to lenders who are providing about $100M in financial support. According to Bloomberg, the company will declare bankruptcy as soon as next week. A group of lenders will provide roughly $100M in debtor-in-possession financing to fund operations through the bankruptcy, and the company will then hand over the business to the lenders in return for turning $750M in debt into equity. The anticipated bankruptcy follows a warning last month that Leslie's might not be able to continue as a going concern, struggling to regain momentum after a pandemic-led boom fizzled, during which the company expanded to more than 1,000 stores, a footprint it was unable to maintain as sales dried up. Leslie's shares have lost 94% of their value over the last three years, trading at less than $1 per share.
Leslies IncLeslie's is preparing a Chapter 11 bankruptcy filing and handing control to lenders, converting $750M of debt to equity.
