WILMINGTON, DE — The LYCRA Company emerged from Chapter 11 bankruptcy protection on May 20 after eliminating more than $1.2 billion in long-term debt and securing over $75 million in new capital, a restructuring that reshapes the ownership and leadership of one of the apparel industry’s largest fiber suppliers.
The company reported the court-supervised restructuring leaves it with a substantially stronger balance sheet and greater financial flexibility as it seeks to invest in operations, product development, and customer relationships across its global business.
The restructuring transfers ownership to a group of investment funds that were previously creditors and long-term holders of the company’s securities. The new owners will take control of the business following completion of the bankruptcy process.
The emergence also triggers a leadership transition.
Chief Financial Officer Dean Williams has been appointed interim chief executive officer while the company conducts a search for a permanent CEO. Former Chief Executive Officer Gary Smith has stepped down and separated from the company.
The company also installed a new board of directors led by Bruce Rubin, a veteran executive with more than four decades of experience in the energy and chemicals sectors, who will serve as executive chairman.
The restructuring significantly reduces the company’s debt burden at a time when manufacturers across the apparel supply chain continue to face pressure from shifting consumer demand, volatile input costs, and evolving global sourcing patterns.
LYCRA maintained operations throughout the bankruptcy proceedings and continued serving customers, employees, and suppliers during the process, according to the company.
Rubin outlined operational performance and investment as key priorities for the board’s next phase.
“With a strong foundation in place, The LYCRA Company will be well-positioned to enhance operational excellence, accelerate innovation, deepen customer partnerships, and reinvest in our high-quality products,” Rubin said.
Williams characterized the company’s emergence from Chapter 11 as a turning point that leaves the business in a stronger financial position.
“We will now be a financially stronger, more focused organization that is positioned for growth,” Williams said.
The LYCRA Company develops specialty fibers and material technologies used in apparel, textiles, and personal care products worldwide.
The company was advised during the restructuring by Linklaters LLP and Haynes Boone LLP as legal counsel, with Houlihan Lokey serving as investment banker and FTI Consulting acting as financial and communications adviser.
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