Following a slow summer, pool supplier Leslie's Inc. filed for bankruptcy with plans to cut up to 90% of its debt and shutter dozens of its retail stores.

The Arizona-based company filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas on Wednesday, citing plans to excise $685M in debt and close 76 of its more than 900 stores, according to a release.

All its other stores are expected to remain open, but Leslie's continues to evaluate its real estate portfolio to "better align its footprint with the long-term needs of the business," according to the release.

“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," Leslie's CEO Jason McDonell said. "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.”

Leslie's, which sells pool and hot tub chemicals, equipment, parts and accessories, reported that it had a total of $786.7M in long-term debt, most of which is maturing in 2028, according to a July Securities and Exchange Commission filing.

The company listed assets between $500M and $1B and liabilities between $1B and $10B, according to the bankruptcy filings.

To fund operations through the restructuring process, the company is seeking court approval for $90M of new money, debtor-in-possession financing and a $225M asset-based financing facility from existing lenders.

Ahead of the filing, Leslie's was in talks with its creditors — including Grey Helm Capital, Axar Capital Management, Cerberus Capital Management and Contrarian Capital Management — about a restructuring plan to hand over control, but the deal did not come to fruition, Bloomberg reported.

The company expects to emerge from bankruptcy by early 2027.

Leslie's reported its total sales were $458.5M, a decline of 8.4% year-over-year during the company's peak season, McDonell said in the company's third-quarter call in August. Following the slow quarter, the company withdrew its previous full-year sales guidance and declined to provide an updated outlook, Chief Financial Officer Jeffrey White said on the call.

"Unfavorable weather patterns during the quarter had an effect on both demand and traffic in our stores and online, resulting in fewer prescribed pool problems that typically drive traffic and purchases for higher margin specialty chemical offerings," McDonell said on the call. "While we saw modest improvements in mid-June, it was not sufficient to overcome the operating leverage headwinds we faced through the balance of the quarter, particularly as competitors reacted with more aggressive inventory-driven pricing actions."

Bankruptcy filings are up more than 12% year-over-year, according to the Administrative Office of the U.S. Courts, and a company's real estate is among the first things to be slashed in a restructuring.