Leading outdoor recreation retailer files Chapter 11 bankruptcy

Usually, when a consumer orders from a credible website, they have few concerns about whether the items they purchase will eventually show up at their house.

That's a change from the traditional retail model, where the customer does not pay for an item until they actually have it in hand. It's a system that requires a level of trust because you're paying for something you haven't yet taken possession of, and in theory, the company could take your money and never actually send you anything.

That, of course, would be a terrible business model. Consumer word of mouth would spread, complaints would be filed with the Better Business Bureau, and people would stop ordering.

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But what happens when a company intends to fulfill an order but ends up filing Chapter 11 bankruptcy?

That answer may be troubling to customers of Recreation Discount Wholesale, a Massachusetts-based online retailer that serves the pool, spa, recreation, and outdoor living spaces, as the company has filed Chapter 11 bankruptcy.

Recreation Discount Wholesale Inc. files Chapter 11 bankruptcy

"Recreation Discount Wholesale Inc, is an online retail company based in Walpole,  Massachusetts. We operate a family of niche ecommerce websites specializing in home recreation, pool & spa, and outdoor living. We offer over 15,000 products and parts that ship thru a network of over 100 vendors and warehouses throughout the United States," the company shared on its website.

Recreation Discount Wholesale Inc. Chapter 11 bankruptcy facts

• Filing for Chapter 11: Recreation Discount Wholesale, Inc. filed a voluntary Chapter 11 bankruptcy petition in the U.S. Bankruptcy Court for the District of Massachusetts on December 2, 2025.
• Case number assigned: The case is identified as No. 25-12606.
• Legal representation / court details: The filing lists the debtor address as “25 Walpole Park South Suite 5, Walpole, MA 02081,” and the attorney of record is listed as Madoff & Khoury LLP.
• Voluntary filing: The bankruptcy is listed as a “voluntary” petition (i.e., initiated by the company).
• Current public record status: As of the last update, publicly available data (via Bankruptcy Observer) does not yet show detailed info on assets, liabilities, or any distribution plan.
  Sources: Bankruptcy Observer, PacerMonitor

Given that the filing was made on Dec. 2, no details have been released about the company's debts and assets. In addition, Recreation Discount Wholesale Inc. has not shared a funding or reorganization plan.

What happens to Recreation Discount Wholesale Inc. customer orders?

• Chapter 11 is a reorganization process: The debtor (company) continues to operate, but under court supervision, while restructuring its debts.
• All the debtor’s property, including its contracts, assets, and by extension unfulfilled orders and deposits, becomes part of a “bankruptcy estate.”
  Source: Whiteford Law
• The bankruptcy triggers an “automatic stay,” which halts creditors from suing or trying to collect pre-bankruptcy debts.
  Source: Ward and Smith, P.A.
• Orders (or supply agreements/purchase orders) made before the bankruptcy that aren’t yet completed are typically considered “executory contracts.” Under these, both buyer and seller still have material obligations (payment, delivery, performance).
• The debtor (the company in bankruptcy) gets to choose whether to “assume” (honor) or “reject” (cancel) these contracts but only before confirmation of the reorganization plan (or earlier if court orders).
  Source: ABC-Amega, Inc.
• If the company assumes the contract, it must cure any defaults (e.g., pay overdue amounts) and provide “adequate assurance” that it can complete performance (deliver the goods).
  Source: Michigan Lawyers Weekly
• If the company rejects the contract, it is relieved from fulfilling remaining obligations — and you become an unsecured creditor, entitled only to a “broad-based” damage claim in the bankruptcy, which often yields little or nothing.
  Source: Association of Corporate Counsel
• Thus, even if you placed an order and paid, the company might not deliver, depending on whether they assume or reject the contract.
  Source: Association of Corporate Counsel
• Prepaid deposits or payments (e.g., you paid for furniture or goods before filing) become part of the bankruptcy estate.
  Source: BDO
• Consumers are treated as creditors: Their claims are bundled with others, and they typically must wait until after secured creditors and administrative expenses (such as legal fees, estate expenses) are paid.
  Source: BDO

"Bankruptcy Code Section 507(a)(7) establishes a priority for individuals’ unsecured claims if their customer deposits for goods that were not delivered total a maximum of $2,850. The remaining portion of the un-refunded deposit would become a general unsecured claim," BDO shared.

Recreation Discount Wholesale Inc. includes multiple websites

While it's not a household name, Recreation Discount Wholesale operates multiple websites, including PoolsInc.com, which provides pool supplies and replacement parts.

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

• One recent report estimates the global swimming pool market was worth about $8.99 billion in 2024 and projects it could grow to  $16.08 billion by 2031.
  Source: Valuates Reports
• Another source calculates that between 2025 and 2029, the global pool market will expand by $7.28 billion, reflecting a steady growth trend.
  Source: Technavio
• According to one forecast, the global market size could be valued around $32.1 billion by 2033, growing at a compound annual growth rate (CAGR) of 2.7% from 2025 onward.
  Source: Global Growth Insights

Recreation Discount Wholesale Inc. also operates HeatWaveSaunasStore.com.

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