Landmark Aquatic has partnered with AngelEye, a global provider of AI and algorithm-based drowning detection and prevention technology, to offer aquatic facilities an additional layer of water safety. AngelEye’s system uses underwater cameras and artificial intelligence software to continuously monitor pools and alert lifeguards and safety personnel in the event of a swimmer in distress, helping facility staff respond quickly when it matters most.

AngelEye’s system addresses a fundamental challenge in aquatic safety: a swimmer in difficulty can be hard to see, especially below the surface or in areas affected by glare, reflections, crowding or complex sightlines. By continuously analyzing video from above and below the water, the technology identifies potentially critical situations and sends trained staff a discreet alert with the swimmer’s image and precise location — giving lifeguards an additional set of eyes when every second matters. AngelEye is designed to support, not replace, qualified supervision: lifeguards remain fully responsible for surveillance, judgment and rescue, and continue to follow their facility’s normal scanning, rotation and emergency procedures.

To date, more than 300 swimming pools in 20 countries rely on the safety experience gained by AngelEyein more than 20 years on the market. Customers who have decided to raise their safety standards by implementing AngelEye include municipal pools, hotels, water parks, wellness centers, schools and community aquatic centers in the U.S. and internationally.

This partnership brings together Landmark’s expertise across aquatic facility design, construction, renovation and service — gained while supporting more than 500 aquatic facilities nationwide — with AngelEye’s drowning detection technology, developed and refined across hundreds of pools over more than 20 years. Together, the companies can help U.S. facilities evaluate the technology in the context of how their pools are designed, staffed and managed, giving operators a knowledgeable, local path from initial assessment to long-term use.

“AngelEye has proven to be an invaluable partner for Landmark in delivering drowning detection technology combining proprietary algorithms and AI. Throughout the design development phase, their team was highly collaborative and professional. During the critical shop drawing phase, they provided precise drawings with exceptional turnaround times, keeping our project management team on schedule,” explains Sam Blake, Director of Business Development at Landmark Aquatic. “Furthermore, their startup and staff training sessions were incredibly informative. We highly recommend AngelEye for their cutting-edge technology and outstanding project execution.”

“For AngelEye, this partnership turns reach into readiness,” said Andrea Marcato, CEO ofAngelEye. “Landmark’s team understands the full lifecycle of a commercial pool, and we bring more than twenty years of experience deploying drowning detection systems across hundreds of pools. Together, we can give lifeguards an additional set of eyes when every second matters, and give U.S. facilities a knowledgeable, local path from initial assessment to long-term use. This is not simply about making a product available — it’s about supporting responsible adoption at scale.”

About Landmark 

Since 1967, Landmark Aquatic has helped communities and organizations bring complex aquatic facilities to life and keep them performing. Today, we are the nation’s largest integrated commercial aquatics platform, providing design, construction, renovation, restoration, and maintenance services nationwide. Our construction-led expertise and long-term service capabilities give customers one trusted partner across every stage of a facility’s lifecycle. For the life of your pool. Learn more at www.landmarkaquatic.com

About AngelEye

AngelEye is a global provider of algorithm-based drowning detection and prevention technology. Founded in 2006, the company has more than 20 years of experience developing and deploying its system, which is installed at more than 300 pools across 20 countries. AngelEye’s technology continuously analyzes video from above and below the water to identify potentially critical situations and alert trained staff with the swimmer’s image and precise location — supporting, not replacing, qualified lifeguard supervision.

After months of mounting financial pressure and weeks of speculation over its future, Leslie’s Inc. has officially filed for Chapter 11 bankruptcy protection, beginning a court-supervised restructuring that is expected to eliminate approximately $685 million in debt and ultimately hand majority ownership of the company to its lenders.

The Phoenix-based pool and spa retailer filed voluntary Chapter 11 petitions Wednesday in the U.S. Bankruptcy Court for the Southern District of Texas. The filing was widely anticipated after Leslie’s disclosed substantial doubt about its ability to continue as a going concern in August and reports surfaced last week that the company was preparing for bankruptcy.

What happens from here, however, is important to understand.

Leslie’s is not shutting down.

This is a prearranged restructuring designed to dramatically reduce the company’s debt while allowing the underlying business to continue operating. More than 80% of Leslie’s existing lenders have already agreed to support the restructuring plan, giving the company a significant head start as it enters Chapter 11.

Under the Restructuring Support Agreement, Leslie’s expects to eliminate approximately $685 million — roughly 90% — of its outstanding funded debt. The company has also secured commitments for $90 million in new debtor-in-possession financing and another $60 million in equity financing. Leslie’s is separately seeking approval for a fully committed $225 million asset-based DIP facility from its existing ABL lenders.

In practical terms, Leslie’s is using Chapter 11 to perform a massive financial reset.

Leslie’s CEO: “Leslie’s Is Here to Stay”

Leslie’s CEO Jason McDonell characterized the restructuring as an opportunity to remove debt from the balance sheet and redirect resources back into the business.

“Today’s announcement marks an important milestone in our commitment to our customers and our business,” McDonell said. “With a stronger balance sheet and greater financial flexibility, Leslie’s can reinvest across the business to strengthen operating execution and deliver an even better experience for our customers, both in-store and online.”

McDonell added, “Leslie’s is here to stay, and I am deeply grateful to our employees, customers, and partners for their continued support as we work to position Leslie’s for a strong future.”

What Chapter 11 Means for Leslie’s

Chapter 11 is often interpreted by consumers as synonymous with a company going out of business. That is not what Leslie’s has announced. The company intends to continue operating throughout the bankruptcy process while restructuring its balance sheet, store footprint and ownership.

Most Leslie’s stores will remain open, its website will continue operating, employees are expected to continue receiving wages and benefits, and the company says gift cards and loyalty benefits will continue to be honored. Leslie’s has also asked the bankruptcy court for authority to continue honoring obligations to vendors in the ordinary course.

There will, however, be a smaller Leslie’s on the other side.

The company announced another 76 store closures as part of the restructuring and said it will continue evaluating its real estate portfolio during Chapter 11. Leslie’s currently operates more than 900 locations nationwide.

What Happens to Leslie’s Now?

The easiest way to understand the transaction is to separate Leslie’s operating business from the financial structure sitting above it.

The problem Leslie’s is attempting to solve through Chapter 11 is not simply whether people still need chlorine, pumps, filters, chemicals and other pool supplies. Millions of swimming pools still require those products every year.

The larger problem has been carrying an enormous debt burden while trying to navigate declining sales, changing consumer behavior and a difficult post-pandemic pool market.

In its fiscal third quarter, Leslie’s reported sales of $458.5 million, down 8.4% from the prior-year period, while comparable sales declined 6.2%. For the first nine months of fiscal 2026, sales declined 7.3% to $790.4 million. Adjusted EBITDA for the third quarter fell to $55.7 million from $81.6 million a year earlier.

Chapter 11 gives Leslie’s an opportunity to address that debt problem directly.

Rather than lenders potentially recovering only a portion of what they are owed through a liquidation or prolonged financial deterioration, the restructuring converts their position into ownership of a substantially less leveraged company.

Upon emergence from bankruptcy, Leslie’s expects a group of its existing lenders to become the company’s majority owners.

That means Leslie’s will essentially emerge with a new capital structure, new majority ownership and approximately $685 million less funded debt hanging over the business.

That is a very different company financially.

The lenders taking control are not simply buying hundreds of pool stores in the traditional sense. They are effectively exchanging a significant portion of the debt they already hold for ownership of the underlying business.

For Leslie’s, removing that debt potentially frees up capital that otherwise would have been consumed servicing it. That money can instead be directed toward inventory, pricing, technology, e-commerce, store improvements and other operational priorities.

It does not, however, solve every problem facing the company.

Leslie’s still has to convince consumers to shop there.

The company still has to compete with independent pool retailers, service professionals, mass merchants and online sellers. It still has to determine the right number of physical stores to operate. And it still has to demonstrate that the underlying business can produce sustainable results once the debt problem has been substantially removed.

Bankruptcy can fix a balance sheet. It cannot, by itself, fix customer traffic, pricing strategy or execution.

That is where the next chapter of this story will ultimately be decided.

What Happens to Existing Shareholders?

Existing Leslie’s shareholders are in a much different position than Leslie’s customers, employees or vendors.

The restructuring agreement calls for lenders to become majority owners of the reorganized company. Exactly what existing shareholders ultimately receive will be determined through the Chapter 11 process and confirmed restructuring plan, but equity sits behind secured and unsecured creditors in bankruptcy priority.

Leslie’s entered Chapter 11 reporting approximately $722.2 million in assets and $1.21 billion in liabilities, according to bankruptcy filings reported by The Wall Street Journal.

That disparity helps explain why the restructuring is centered around creditors rather than preserving the company’s existing ownership structure.

For anyone watching Leslie’s stock, that distinction is critical: keeping Leslie’s stores operating does not mean preserving the value of Leslie’s existing publicly traded shares.

The business can survive while the existing capital structure does not.

Why the Bankruptcy Is Happening in Houston

Although Leslie’s is headquartered in Phoenix, the company filed its Chapter 11 cases in the Southern District of Texas. The case has been assigned to U.S. Bankruptcy Judge Alfredo Perez under Case No. 26-90795.

Houston has become a major venue for large corporate restructurings, with a bankruptcy bench and professional infrastructure accustomed to handling complicated Chapter 11 cases.

Leslie’s has retained Simpson Thacher & Bartlett and Haynes and Boone as legal advisers, BRG as financial and restructuring adviser, and Centerview Partners as investment banker.

What Pool Professionals Should Watch Next

For the pool and spa industry, the most immediate concern will be how aggressively Leslie’s reshapes its retail footprint.

The 76 announced closures may not necessarily represent the final number. Leslie’s specifically said it will continue evaluating its real estate portfolio during Chapter 11, giving the company an opportunity to reject leases and exit locations that no longer make economic sense.

That could create opportunities for independent pool retailers and service companies in markets where Leslie’s reduces its presence.

Vendors will also be watching closely. Leslie’s says it intends to continue paying vendors and operating normally during the proceedings, subject to court approval of its first-day motions. Maintaining supplier confidence will be important for a retailer whose business depends heavily on keeping stores stocked during the pool season.

The company is targeting an emergence from Chapter 11 in early 2027.

If that timetable holds, the Leslie’s that emerges will look considerably different financially from the company entering bankruptcy today.

The familiar orange-and-blue stores are not disappearing. Leslie’s is not being liquidated, and the company is making it clear that it intends to remain one of the largest players in the pool and spa aftermarket.

What is disappearing is much of the debt structure that became increasingly difficult for the company to carry.

The bankruptcy process will now determine exactly how that restructuring is implemented, which stores survive the continuing portfolio review, how creditors are treated and what ultimately happens to existing shareholders.

For the pool industry, the more important question is no longer whether Leslie’s will file for bankruptcy.

It has.

The question now is what Leslie’s looks like when it comes out the other side.

Leslie’s, Inc. (NASDAQ: LESL) is reportedly preparing to file for Chapter 11 bankruptcy protection as soon as next week, potentially handing control of the 63-year-old retailer to its lenders. The news comes as the company faces the prospect of being delisted from Nasdaq following a prolonged collapse in its share price.

According to September 24 reports from Bloomberg and The Wall Street Journal, Leslie’s is working toward a restructuring agreement that would transfer ownership to its creditors. Lenders are reportedly prepared to provide approximately $100 million in financing to keep the business operating through bankruptcy, while roughly $750 million in debt could be exchanged for equity.

For existing shareholders, the implications could be devastating. If the restructuring proceeds as reported, their investments could be substantially diluted or wiped out entirely.

Leslie’s has not formally announced a bankruptcy filing, but the possibility is hardly unexpected. In its August quarterly SEC filing, the company acknowledged substantial doubt about its ability to continue operating and warned that bankruptcy could become necessary if it was unable to restructure or refinance its debt.

The latest developments suggest that efforts to stabilize the business through store closures, lower prices and aggressive cost-cutting have not been enough to overcome its mounting financial problems.

A Second Trip to Wall Street That Could End in Bankruptcy

This isn’t Leslie’s first time as a publicly traded company.

After previously operating as a public company before being acquired by private equity, Leslie’s returned to Wall Street in October 2020, during an unprecedented boom in swimming pool construction and backyard spending.

With millions of Americans investing in pools, outdoor living and home improvements, the company appeared well positioned for continued growth.

Instead, the years that followed proved considerably more difficult.

As pandemic spending faded, inflation and higher interest rates squeezed household budgets. New-pool construction slowed, consumers became more selective about discretionary purchases, and the extraordinary demand that had fueled the industry began returning to normal.

Leslie’s was also facing growing competition from Walmart, Home Depot, Lowe’s, Amazon and numerous online pool supply retailers. Customers who once relied on their local pool store could now compare prices and purchase many of the same products without leaving home.

The company responded by closing 80 underperforming stores and one distribution center, reducing inventory and introducing lower prices to attract customers.

For a brief period, those efforts appeared to be working.

According to its second-quarter earnings report, revenue increased 4.3%, comparable sales improved 6.6%, and customer counts rose 8% compared with the previous year. Investors cautiously welcomed the improvement, hoping it signaled the beginning of a turnaround.

Unfortunately, that optimism proved short-lived.

Summer Sales Tell a Different Story

Leslie’s third-quarter earnings, released August 12, revealed that the company was still struggling during what should have been its strongest selling season.

Revenue declined 8.4% to $458.5 million, compared with $500.3 million during the same quarter a year earlier. Comparable sales fell 6.2%, while adjusted EBITDA dropped from $81.6 million to $55.7 million.

Gross margins also deteriorated, falling from 39.6% to 36.5%, illustrating the difficulty of maintaining profitability while lowering prices to compete for customers.

For the first nine months of fiscal 2026, Leslie’s reported a net loss of $87.7 million. Management subsequently withdrew its full-year financial guidance as the company explored alternatives to address its debt.

The problem wasn’t simply that Leslie’s was selling fewer pool supplies. It was that declining sales were making an already difficult financial situation considerably worse.

As of July 4, Leslie’s reported approximately $1.21 billion in total liabilities against $722.2 million in assets, including roughly $753 million in long-term debt.

Closing stores and reducing expenses can help preserve cash, but those measures alone cannot resolve a debt burden of that magnitude.

The reported restructuring would effectively exchange much of that debt for ownership of the company, giving Leslie’s an opportunity to continue operating without the same financial obligations hanging over its head.

For its existing shareholders, however, that opportunity could come at a substantial cost.

Nasdaq Delisting Could Be Next

Bankruptcy isn’t Leslie’s only immediate concern. The company also faces the prospect of being removed from Nasdaq, and the timing of its previous reverse stock split could accelerate that process.

Leslie’s completed a 1-for-20 reverse stock split in September 2025, consolidating every 20 existing shares into one in an effort to address its declining stock price. Split-adjusted trading began September 29, but the stock has since fallen back below Nasdaq’s $1 minimum bid-price requirement.

Normally, a company whose closing bid price remains below $1 for 30 consecutive business days receives 180 days to regain compliance. However, Nasdaq’s rules prohibit that grace period for companies that completed a reverse stock split within the preceding year.

Leslie’s reverse split became effective September 26, 2025, making the timing of its latest share-price decline particularly significant.

If Leslie’s has closed below $1 for 30 consecutive business days while that one-year reverse-split restriction remains in effect, it would not be eligible for Nasdaq’s ordinary compliance period. Under Nasdaq’s rules, staff would issue a Staff Delisting Determination rather than provide the usual 180-day period to regain compliance.

The company could request a hearing to appeal such a determination, although an appeal would not guarantee that its shares remain listed.

A Chapter 11 filing would create another potential obstacle. Nasdaq has discretionary authority to delist companies undergoing bankruptcy, particularly when a restructuring could eliminate existing shareholder equity.

As of September 24, a new Nasdaq delisting determination related to the company’s current share-price performance or reported bankruptcy preparations has not been publicly confirmed.

What Bankruptcy Would Mean for the Pool Industry

A Chapter 11 filing wouldn’t necessarily mean Leslie’s is going out of business.

The process allows companies to continue operating while restructuring their debts, renegotiating contracts and developing a plan to emerge from bankruptcy. The reported $100 million in financing could provide the cash necessary to pay employees, purchase inventory and keep stores open while the restructuring moves through court.

For pool owners, the immediate impact may be relatively limited. Leslie’s could continue selling chemicals, equipment and replacement parts while providing the water testing and technical advice that have long been central to its retail business.

For manufacturers and distributors, however, the implications could be considerably greater.

Leslie’s remains one of the industry’s largest retail distribution channels. A bankruptcy could force suppliers to renegotiate payment terms, reconsider credit arrangements and adjust inventory or production plans. Additional store closures could also affect manufacturers that depend heavily on the retailer to get their products in front of consumers.

Independent pool stores and competing retailers could potentially gain customers if Leslie’s reduces its footprint, particularly in markets where the company has historically maintained a strong presence. However, disruptions to supplier relationships and distribution could also create challenges for businesses throughout the industry.

The bigger question is how much of Leslie’s existing business will survive the restructuring. Its nationwide store network, established customer base and professional water testing services still have value, but those advantages haven’t been enough to offset declining sales and the company’s substantial debt.

Can Leslie’s Survive?

For Leslie’s, Chapter 11 could provide an opportunity to address financial problems that store closures and cost-cutting have been unable to resolve. Exchanging debt for equity could substantially reduce its obligations and allow the retailer to continue operating under new ownership.

That doesn’t mean the underlying challenges disappear. Leslie’s would still have to compete with big-box retailers and online sellers, rebuild customer traffic and find a way to operate profitably with a potentially smaller retail footprint.

For existing shareholders, the reported restructuring presents a different situation. If lenders take ownership in exchange for forgiving debt, there may be little or nothing left for current equity holders.

The coming days should provide a clearer picture of the company’s future. A formal bankruptcy filing would reveal the proposed restructuring terms, financing arrangements and any additional changes to its retail operations.

For the thousands of employees, manufacturers and suppliers that depend on Leslie’s, the immediate concern will be whether the company can maintain normal operations while reorganizing its finances.

For a retailer that has served American pool owners since 1963, the next chapter could look considerably different from the business that returned to Wall Street six years ago.