Fashion Group Shandong Ruyi’s Creditors Take Full Control of Lycra | Investing News
(Reuters) – U.S. fiber maker Lycra has gained new ownership, with lenders of its previous father or mother enterprise Shandong Ruyi Know-how Team (Ruyi) taking whole fairness command after the Chinese fashion conglomerate defaulted on a $400 million bank loan.
The new owners consist of Hong Kong-primarily based China Everbright Ltd, Tor Investment decision Administration and Seoul-centered personal equity business Lindeman Partners and its affiliate Lindeman Asia.
“We have implemented swiftly the proactive steps expected to protect and bolster the potential of The LYCRA Enterprise and to insulate the Firm thoroughly from its former shareholder’s fiscal distress,” the new proprietors claimed in a assertion.
Lycra CEO Julien Born reported in a different assertion: “the new possession composition provides the vital backing from seasoned pros who share our long-time period vision.”
Representatives for Ruyi did not immediately reply to a ask for for comment.
Ruyi acquired manage of Lycra from U.S. conglomerate Koch Industries for $2.6 billion in 2019, borrowing about $1 billion for the offer.
The Chinese fashion agency established out to make a international luxury garments empire, embarking on a getting spree that incorporated London-based mostly suitmaker Aquascutum, Paris-centered vogue property Cerruti 1881 and manner team SMCP.
But the conglomerate has struggled underneath the bodyweight of its financial debt and its economical problems worsened with the COVID-19 pandemic.
(Reporting by Akriti Sharma in Bengaluru Modifying by Edwina Gibbs)
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