Fashion group Shandong Ruyi's creditors take full control of Lycra

China Everbright

29/06/2022 04:00

June 29 (Reuters) - U.S. fiber maker Lycra has gained new
ownership, with creditors of its former parent company Shandong
Ruyi Technology Group (Ruyi)  002193.SZ  taking full equity
control after the Chinese fashion conglomerate defaulted on a
$400 million loan.
    The new owners consist of Hong Kong-based China Everbright
Ltd  0165.HK , Tor Investment Management and Seoul-based private
equity firm Lindeman Partners and its affiliate Lindeman Asia
 277070.KQ . 
    "We have implemented swiftly the proactive steps required to
protect and strengthen the future of The LYCRA Company and to
insulate the Company fully from its former shareholder's
financial distress," the new owners said in a statement. 
    Lycra CEO Julien Born said in a separate statement: "the new
ownership structure provides the necessary backing from
experienced professionals who share our long-term vision." 
    Representatives for Ruyi did not immediately respond to a
request for comment.
    Ruyi bought control of Lycra from U.S. conglomerate Koch
Industries for $2.6 billion in 2019, borrowing about $1 billion
for the deal.
    The Chinese fashion firm set out to create a global luxury
clothing empire, embarking on a buying spree that included
London-based suitmaker Aquascutum, Paris-based fashion house
Cerruti 1881 and fashion group SMCP.
    But the conglomerate has struggled under the weight of its
debt and its financial difficulties worsened with the COVID-19
pandemic.  urn:newsml:reuters.com:*:nL1N2TU1IZ

 (Reporting by Akriti Sharma in Bengaluru; Editing by Edwina
Gibbs)
 ((Akriti.Sharma@thomsonreuters.com;))