Leslie's Stock Plunges Following Chapter 11 Bankruptcy Reports

Leslie's Inc. (NASDAQ: LESL) is reportedly preparing to file for Chapter 11 bankruptcy protection, leading to a 14.75% drop in its stock price, trading at 28 cents. The company is finalizing a restructuring agreement that will involve a $100 million debtor-in-possession financing from lenders, who will take control of the business in exchange for converting approximately $750 million in debt into equity. This decision follows a 'going concern' warning due to severe liquidity issues and a heavy debt load, exacerbated by declining sales after the pandemic-driven expansion.