Change of Owners for The Lycra Company
A group of four financial institutions have gained full control of The Lycra Company after former owner Ruyi Textile and Fashion International Group defaulted on a $400 million loan associated with its purchase from Invista in January 2019.
The new owners are South Korean private equity group Lindeman Partners Asset Management and its affiliate Lindeman Asia, and Hong Kong-based Tor Investment Management and China Everbright. The change of equity control follows the conclusion of a receivership process that started in February when the financial investors took enforcement action against Ruyi Textile.
A spokesperson for the new shareholders said The Lycra Company is in a strong financial position and has a solid foundation for long-term growth.
“I am thrilled to have the full support of our new shareholders and incoming board of directors as we begin the next chapter in The Lycra Company’s story,” said Julien Born, CEO of The Lycra Company. “This new ownership structure provides the necessary backing from experienced investment professionals who share our long-term vision.”
Headquartered in Wilmington, Delaware, The Lycra Company was once part of DuPont, which sold the business along with its nylon assets to Invista, a subsidiary of Koch Industries, in April 2004.
Originally a textiles manufacturer, Ruyi had plans to build a major Chinese fashion conglomerate. An acquisition spree that started in 2015 added – among others – luxury brands Aquascutum and Savile Row tailor Gieves & Hawkes, but the Chinese group struggled under its debts and its financial difficulties worsened during the COVID-19 pandemic, media reports said.
Author: Elaine Burridge, Freelance Journalist
