February 14, 2025

Fashion

Qualified fashion technicians

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

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June 29 (Reuters)U.S. fiber maker Lycra has acquired new ownership, with creditors of its former guardian company Shandong Ruyi Know-how Group (Ruyi) 002193.SZ getting entire equity regulate following the Chinese fashion conglomerate defaulted on a $400 million bank loan.

The new house owners consist of Hong Kong-primarily based China Everbright Ltd 0165.HK, Tor Investment Management and Seoul-based personal fairness company Lindeman Companions and its affiliate Lindeman Asia 277070.KQ.

“We have carried out swiftly the proactive measures necessary to protect and fortify the future of The LYCRA Corporation and to insulate the Business thoroughly from its previous shareholder’s economic distress,” the new owners mentioned in a statement.

Lycra CEO Julien Born said in a different assertion: “the new ownership composition gives the vital backing from experienced experts who share our prolonged-expression eyesight.”

Reps for Ruyi did not straight away answer to a ask for for remark.

Ruyi acquired command of Lycra from U.S. conglomerate Koch Industries for $2.6 billion in 2019, borrowing about $1 billion for the offer.

The Chinese fashion organization set out to build a international luxurious clothing empire, embarking on a acquiring spree that incorporated London-centered suitmaker Aquascutum, Paris-primarily based fashion property Cerruti 1881 and fashion team SMCP.

But the conglomerate has struggled below the pounds of its credit card debt and its economical complications worsened with the COVID-19 pandemic.

(Reporting by Akriti Sharma in Bengaluru Editing by Edwina Gibbs)

((Akriti.Sharma@thomsonreuters.com))

The views and thoughts expressed herein are the views and viewpoints of the creator and do not necessarily mirror individuals of Nasdaq, Inc.

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