Leslie’s (NASDAQ:LESL) shares fell 23.1% in pre-market trading to $0.112 ahead of the scheduled suspension of trading in the pool and spa care retailer’s stock at the opening of business on October 6, 2026.
Nasdaq notified Leslie’s on September 25 that its shares were subject to delisting after the closing bid price remained below the exchange’s $1.00 minimum requirement for 30 consecutive business days.
The company said it does not intend to appeal the decision and expects its shares to move to an over-the-counter market. Leslie’s said there is no assurance that an active or liquid trading market will continue following the transition.
Chapter 11 Plan Provides for Cancellation of Existing Shares
Leslie’s filed a Chapter 11 restructuring plan on September 30 that is supported by lenders holding approximately 81% of its term loan debt.
Under the restructuring support agreement, all existing common shares are expected to be cancelled without consideration when the plan becomes effective. Majority ownership of the reorganised company would transfer to lenders and investors providing new capital.
The restructuring is intended to eliminate approximately $685 million of funded debt and includes plans to close 76 stores.
Leslie’s has also secured a $225 million debtor-in-possession credit facility to support operations during the restructuring process.
Revenue Declines and Full-Year Guidance Withdrawn
Leslie’s reported fiscal third-quarter 2026 revenue of $458.5 million, down 8.4% from the previous year. Comparable sales declined 6.2%, which the company attributed to weaker consumer demand for pool and spa products.
The company subsequently withdrew its full-year financial guidance and disclosed substantial doubt about its ability to continue as a going concern.
The decline in Leslie’s shares came as the broader US equity market recorded comparatively modest losses.
With Nasdaq trading scheduled to be suspended on October 6 and the proposed restructuring providing for the cancellation of existing common equity, the company’s shares were trading around their 52-week low. The stock’s 52-week range is $0.12 to $12.53.