U.S. fiber maker Lycra has gained new ownership, with creditors of its former parent company Shandong Ruyi Technology Group (Ruyi) 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, Tor Investment Management and Seoul-based private equity firm Lindeman Partners and its affiliate Lindeman Asia.
"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.