WILMINGTON, Del. (BRAIN) — The Lycra Company, which declared Chapter 11 bankruptcy in March, completed a restructuring that includes new equity owners, CEO, and a board of directors.
According to a news release Tuesday, Lycra has emerged from Chapter 11 protection with long-term debt reduced by more than $1.2 billion; the company will obtain more than $75 million in new investment. Throughout the restructuring, the company continued operations.
The new owners, who were not identified, "have been long-term investors in the company's securities ... and are committed to building on the positive momentum of the restructuring process by investing in the company's future success."
CEO Gary Smith stepped down, and CFO Dean Williams appointed interim CEO. Williams will serve in the role until a permanent replacement is named. Bruce Rubin, who has a background as an energy and chemicals executive, is the new board's executive chairman. The remainder of Lycra's executive leadership team remains in place.
"Emergence marks a defining moment for The Lycra Company," Williams said. "We will now be a financially stronger, more focused organization that is positioned for growth. This milestone would not have been possible without our team members, whose resilience, dedication, and commitment to our customers enabled us to navigate this process without disruption. While we still have work to do to reach our full potential, we have never been better positioned to do so."
When declaring bankruptcy protection, estimated assets and liabilities were listed at between $100,000-$500,000 million and creditors were listed between 200-999. The list of secured creditors is topped by Kroll Agency Services Limited, which is owed $19.4 million.
Lycra's product lines, which can be found in everything from activewear to denim and medical compression garments, include Lycra fiber, Lycra HyFit fiber, Lycra T400, Coolmax, THERMOLITE, Supplex, and Tactel.
While not an apparel manufacturer, the Lycra Company produces fibers it sells to mills that incorporate them into garments.
Invented by DuPont chemist Joseph Shivers in 1958, it evolved into a spandex brand a couple years later. In 2004, Invista, a Koch Industries subsidiary, acquired the brand, which became the Lycra Company in 2019.
