Leslies Inc (LESL)

S&P Global Ratings has downgraded Leslie’s Poolmart Inc. to ’CCC-’ from ’CCC’ due to the heightened risk of a distressed debt restructuring before its $756 million term loan facility becomes current in March 2027. The company is discussing debt modifications with stakeholders and withdrew its full-year 2026 guidance after weaker-than-expected fiscal third-quarter results. S&P expects to further lower the rating to 'SD' if a distressed transaction is completed, as the company faces declining revenue and less than adequate liquidity.

S&P Global Ratings downgraded Leslie’s Poolmart Inc. to 'CCC-' from 'CCC' due to the heightened risk of a distressed debt restructuring before its $756 million term loan facility becomes current in March 2027. The company's term loan is trading at approximately 20 cents on the dollar, and Leslie’s has withdrawn its full-year 2026 guidance following weaker-than-expected fiscal third-quarter earnings. S&P expects further downgrades if a distressed transaction occurs, noting concerns about liquidity and declining revenue.

Shares of Leslie's (LESL), a pool products retailer, plummeted 42.2% after reporting weak fiscal third-quarter 2026 results, withdrawing full-year guidance, and flagging substantial doubt about its ability to continue as a going concern due to its highly leveraged balance sheet. The company's revenue missed estimates, comparable sales declined, and adjusted EPS fell short of consensus. Leslie's is now exploring strategic alternatives to address its financial situation.

Leslie’s Inc., a Phoenix-based national pool retailer, is exploring "strategic alternatives," including a potential sale of the company or parts of it, to address its financial struggles. This comes after Bloomberg previously reported the company was considering Chapter 11 bankruptcy. The announcement follows disappointing fiscal third-quarter results, which saw revenue decrease by 8.4% and comparable sales drop by 6.2%, causing its stock price to fall over 40%.

Leslie's, a Phoenix-based pool supplier, is exploring "strategic alternatives" including a potential sale to address its significant debt after reporting a net loss of $87.7 million over nine months. The company's stock price has fallen below $1, prompting executives to consider a deleveraging transaction. This move comes as the company faces financial challenges, with previous reports indicating it considered bankruptcy and shuttered dozens of stores.