The popular outdoor sports retailer files for Chapter 11 bankruptcy

• Chapter 11 is one reorganization Process: The debtor (company) continues to operate while restructuring its debt, but under court supervision.

• All of the debtor’s assets, including its contracts, assets, and by extension incomplete orders and deposits, become part of the “bankruptcy estate.”
  Source: Whiteford Law

• Bankruptcy triggers an “automatic stay,” which prevents creditors from suing or trying to collect pre-bankruptcy debts.
  Source: Ward and Smith, PA

• Orders made prior to bankruptcy (or supply contracts/purchase orders) that have not yet been completed are generally considered “executive contracts”. Under these, both buyer and seller still have physical obligations (payment, delivery, performance).

• The debtor (the company in bankruptcy) gets to choose “value” (respect) Or “rejection” (cancel) these contracts but only before confirmation of the reorganization plan (or earlier if ordered by a court).
  Source: ABC-Amega, Inc.

• If the company considered contract, it must cure any default (eg, pay an overdue amount) and provide “adequate assurance” that it can complete the performance (deliver the goods).
  Source: Michigan Lawyer Weekly

• If the company refuses agreement, it is released from fulfilling the remaining obligations — and you become an unsecured creditor, entitled only to a “broad-based” damage claim in bankruptcy, which often yields little or nothing.
  Source: Association of Corporate Counsel

• Therefore, even if you place an order and pay, the company may no Deliver, depending on whether they accept or reject the contract.
  Source: Association of Corporate Counsel

• Prepaid deposits or payments (eg, you paid for furniture or accessories before you filed) can become part of the bankruptcy estate.
  Source: BDO

• Consumers are treated as creditors: their claims are bundled with others, and they usually have to wait until later. Secured creditors and Administrative expenses (eg legal fees, estate expenses) are paid.
  Source: BDO

“Bankruptcy Code Section 507(a)(7) establishes priority for an individual’s unsecured claims if their customer deposits for total undelivered goods up to a maximum of $2,850. The remainder of the undelivered deposit will be a general unsecured claim,” BDO shared.

Although it’s not a household name, Recreation Discount Wholesale operates several websites, including PoolsInc.com, which offers pool supplies and replacement parts.

The pool market is growing, although different data providers disagree on the numbers:

• A recent report estimates the global swimming pool market value $8.99 billion in 2024 And projects that can grow it $16.08 billion by 2031.
  Source: Evaluation reports

• Another source calculates that between 2025 and 2029, the global pool market will expand. $7.28 billionreflecting a steady growth trend.
  Source: Technavio

• According to a projection, the global market size can be estimated around $32.1 billion by 2033Growing at a compound annual growth rate (CAGR) of 2.7% from 2025.
  Source: Global Growth Insights

Entertainment Discount Wholesale Inc. Also operates HeatWaveSaunasStore.com.

Related: 122-Year-Old Motorcycle Brand Struggles, Dozens of Dealers Close

This story was originally published by TheStreet on December 3, 2025, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.