Monitor Bankruptcy Court approval of first-day motions (interim DIP order expected within 3 days) and the 100-day confirmation timeline. The stock will be delisted from Nasdaq on October 6, 2026 and is expected to be cancelled for no consideration under the Plan — equity holders will likely receive zero recovery.
Price Chart
Executive Summary
Leslie's, Inc. filed for Chapter 11 bankruptcy on September 30, 2026, alongside a pre-arranged restructuring support agreement with ~81.1% of its term loan lenders. The plan includes $90M in DIP term loans, a $225M DIP ABL facility, a $60M equity rights offering, and will cancel all existing common equity for no consideration. The company also received a Nasdaq delisting notice and closed 76 underperforming stores.
Key Facts
- Filed Chapter 11 petitions on September 30, 2026 in the Southern District of Texas
- Restructuring Support Agreement signed with holders of ~81.1% of Prepetition Term Loan Claims
- $90M superpriority secured DIP term loan facility ($45M interim, $45M final)
- $225M DIP ABL revolving credit facility with creeping roll-up of prepetition ABL
- $60M equity rights offering for New Common Equity (55.80% of post-emergence equity)
- Existing common stock (LESL) to be cancelled for no consideration on Plan Effective Date
- Prepetition term loan lenders to receive 10% of New Common Equity; remaining DIP claims convert to 30% of New Common Equity
- Nasdaq delisting notice received; trading to be suspended October 6, 2026; company not appealing
- 76 stores closed on September 29, 2026 as part of strategic plan
- Prepetition term loan facility had ~$756.65M outstanding; prepetition ABL had ~$50M outstanding
- Plan milestones: interim DIP order within 3 days, final DIP order within 35 days, plan confirmation within 100 days, effective date within 110 days
Financial Impact
Chapter 11 filing with ~$807M in prepetition debt ($756.65M term loan + $50M ABL). Existing equity to be wiped out. $150M of new capital ($90M DIP + $60M equity) to fund operations. ~$685M or 90% of funded debt to be eliminated upon emergence.
Risk Factors
- Existing common equity to be cancelled for no consideration — total loss for shareholders
- Nasdaq delisting effective October 6, 2026 — severe liquidity reduction for any remaining trading
- Plan confirmation requires Bankruptcy Court approval and may face objections from creditors or other stakeholders
- Operational risk from 76 store closures and potential additional closures (up to 200 contemplated)
- Revenue declined 8.3% YTD through August 2026 vs prior year; gross margin compressed 320bps to 32.1%
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-408874 |
| Document: d175109d8k.htm | 0001193125-26-408874 |
| Document: d175109dex991.htm | 0001193125-26-408874 |
| Document: d175109dex992.htm | 0001193125-26-408874 |
| Document: 0001193125-26-408874-index-headers.html | 0001193125-26-408874 |
| Document: 0001193125-26-408874-index.html | 0001193125-26-408874 |
| Document: 0001193125-26-408874.txt | 0001193125-26-408874 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 5, 2026 20d ago | 8-K | $0.0900 $0.0200 | ▲ +77.78% | ▲ +77.64% | $0.0800 (+11.11%) |
Sep 30, 2026 26d ago | 8-K | $0.1600 $0.0600 | ▲ +62.50% | ▲ +64.41% | $0.0800 (+50.00%) |
Jun 1, 2026 20w ago | 8-K | $3.95 $8.18 | ▲ +107.09% | ▲ +110.05% | $0.0800 (−97.97%) |
May 13, 2026 23w ago | 8-K | $3.50 $3.09 | ▼ −11.71% | ▼ −11.00% | $0.0800 (−97.71%) |
May 13, 2026 23w ago | Press Release | $3.50 $3.09 | ▲ +11.71% | ▲ +11.00% | $0.0800 (+97.71%) |
Apr 30, 2026 25w ago | Press Release | $1.71 | awaiting T+5 | — | $0.0800 (−95.32%) |
US Market Status
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