Lycra Company files for bankruptcy to cut US$1.2b debt

The Lycra Company – whose spandex fibres are widely used in cycling apparel – has filed for Chapter 11 bankruptcy in the US, aiming to eliminate roughly US$1.2 billion in debt through lender-backed restructuring. The US-based company said it has already secured US$75 million in new financing and expects to complete the restructuring in 45 days while continuing to operate as normal. The Chapter 11 filing follows the company's 2019 acquisition by Shandong Ruyi, a Chinese multinational textile and apparel conglomerate. The ownership change left Lycra in deep debt, and lenders first took control of the company in 2022 when it continued to struggle with low demand, increased competition from cheaper products, US tariffs and legal disputes with its former Chinese owners. Lycra was founded in 1958 as part of DuPont, and employs some 2,000 people globally across its eight manufacturing facilities, three labs and 11 offices.