Usually, when a consumer orders from a trusted website, they have little concern about whether the items they purchase will eventually show up at home.
This is 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 send you anything.
This, of course, would be a terrible business model. Word of mouth would spread, complaints would be filed with the Better Business Bureau, and people would stop ordering.
More retail:
But what happens when a company intends to fulfill an order but ends up filing for Chapter 11 bankruptcy?
That answer may be troubling to customers of Recreation Discount Wholesale, a Massachusetts-based online retailer serving the pool, spa, recreation and outdoor living spaces, as the company has filed for Chapter 11 bankruptcy.
“Recreation Discount Wholesale Inc, is an online retail company based in Walpole, Massachusetts. We operate a family of niche e-commerce sites specializing in home recreation, pool and spa and outdoor living. We offer over 15,000 products and parts that ship through a network of over 100 dealers and warehouses across the United States,” the company said on its website.
Filing for Chapter 11: Recreation Discount Wholesale, Inc. filed for voluntary Chapter 11 bankruptcy in the US Bankruptcy Court for the District of Massachusetts on December 2, 2025.
Assigned case number: The case is identified as No. 25-12606.
Legal representation / court details: The file lists the debtor’s address as “25 Walpole Park South Suite 5, Walpole, MA 02081” and the attorney of record is listed as Madoff & Khoury LLP.
Voluntary submission: The bankruptcy is listed as a “voluntary” (ie, company-initiated) petition.
Current state of the public record: As of last updated, publicly available data (via Bankruptcy Observer) do Not yet display detailed information about assets, liabilities or any distribution plan. Sources: Bankruptcy Observer, PacerMonitor
Since the filing was made on December 2, details of the company’s liabilities and assets were not made public. In addition, Recreation Discount Wholesale Inc. did not share a financing or reorganization plan.
Recreation Discount Wholesale Inc. sells pool items among many other things.Shutterstock” loading=”lazy” height=”540″ width=”960″ class=”yf-1gfnohs loader”/>
Recreation Discount Wholesale Inc. sells pool supplies among many other things.Shutterstock
Chapter 11 is a reorganization process: The debtor (company) continues to operate, but under court supervision, while it restructures its debts.
All of the debtor’s assets, including contracts, assets, and by extension unenforced orders and deposits, become part of a “bankruptcy estate.” Source: Whiteford’s Law
Bankruptcy triggers an “automatic stay,” which prevents creditors from suing or trying to collect pre-bankruptcy debts. Source: Ward and Smith, PA
Orders (or supply agreements/purchase orders) made before bankruptcy that have not yet been finalized are usually considered “executable contracts”. According to them, both the buyer and the seller still have material obligations (payment, delivery, performance).
The debtor (the bankrupt company) can choose whether to do so “assume” (honour) or “reject” (cancel) these contracts but only before confirmation of the reorganization plan (or earlier if the court orders). Source: ABC-Amega, Inc.
If the firm assume of the contract, he must remedy any irregularities (for example, pay outstanding amounts) and give “adequate assurance” that he can complete the performance (delivery of the goods). Source: Michigan Lawyers Weekly
If the firm reject contract, it is exempt from fulfilling the remaining obligations — and you become an unsecured creditor, entitled only to a “broad” claim in bankruptcy, which often yields little or nothing. Source: Association of Corporate Counsel
So even if you placed an order and paid, the company could not deliver, depending on whether they accept or reject the contract. Source: Association of Corporate Counsel
Prepaid deposits or payments (for example, you paid for furniture or goods before filing) become part of the bankruptcy estate. Source: BDO
Consumers are treated as creditors: their claims are grouped with others and usually have to wait until after secured creditors and administrative expenses (such as legal fees, real estate expenses) are paid. Source: BDO
“Section 507(a)(7) of the Bankruptcy Code establishes a priority for individuals’ unsecured claims if their customers’ deposits for undelivered goods total $2,850 or less. The remaining portion of the unpaid deposit would become general unsecured debt,” BDO said.
Although not a household name, Recreation Discount Wholesale operates several websites, including PoolsInc.com, that carry pool supplies and replacement parts.
The pool market has grown, although different data providers disagree on the numbers:
A recent report estimates that the global swimming pool market is worth approx $8.99 billion in 2024 and projects they could grow to $16.08 billion by 2031. Source: Evaluation reports
Another source calculates that between 2025 and 2029, the global swimming pool market will expand by 7.28 billion dollarsreflecting a steady upward trend. Source: Technavio
According to a forecast, the global market size could be valued at around $32.1 billion by 2033growing at a compound annual growth rate (CAGR) of 2.7% starting in 2025. Source: Global Growth Insights
Recreation Discount Wholesale Inc. also operates HeatWaveSaunasStore.com.
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This story was originally published by TheStreet on December 3, 2025, where it first appeared in the Retail section. Add TheStreet as a favorite source by clicking here.
