Leslie’s Inc. Closes 80 Stores Amid Financial Struggles

Phoenix-based pool supplies retailer Leslie’s Inc. (Nasdaq: LESL) has shuttered 80 stores across the United States and a distribution center in Illinois as part of a restructuring effort to address significant financial losses. The closures, announced on February 17, 2026, represent a substantial reduction in the company’s retail footprint.

Restructuring and Financial Performance

The decision to close stores and a distribution center follows a comprehensive review of Leslie’s asset base, initiated in early December. This review identified underperforming locations and inefficiencies within the company’s distribution network. According to Leslie’s CEO Jason McDonell, 64 of the store closures were completed within seven days of the December 2 announcement.

The company reported a quarterly net loss of $83.0 million and an adjusted EBITDA of negative $40.3 million. Leslie’s recorded a $10.1 million noncash impairment charge related to the closures, as it works to reduce inventory and cut slow-moving products Hoodline.

Strategic Changes and Future Outlook

Beyond store closures, Leslie’s is implementing a broader reset strategy that includes a pricing overhaul, optimization of its distribution center network, and a reduction of over 2,000 slow-moving stock keeping units (SKUs). The company anticipates that the store closures will reduce annual sales by $25 million to $35 million but improve annualized EBITDA by $4 million to $10 million Hoodline.

Leslie’s, founded in 1963, remains the largest direct-to-consumer brand in the U.S. Pool and spa care industry, operating more than 950 physical locations and multiple digital platforms Leslie’s Investor Relations.

Recent Developments

In less than a year, Leslie’s has shuttered two distribution centers, including the Illinois facility. An 8-K filing with the Securities and Exchange Commission revealed a plan, locked in on November 25, 2025, to close approximately 80 to 90 U.S. Stores and the single distribution center, with estimated pre-tax exit charges ranging from $12 million to $17 million Hoodline.

The closures were geographically dispersed across the U.S., and the company remains a major employer in its headquarters city of Phoenix, Arizona ABC15.