Lycra Company, a manufacturer of elastic textile fibers, has fallen into the hands of creditors following a court decision in Amsterdam. The Dutch financial newspaper ‘Het Financieele Dagblad’ already reported on this on Friday.
Lycra was acquired by Chinese fashion company Shandong Ruyi in 2019. However, the Chinese company ran into difficulties and was unable to meet its financial obligations. The creditors then initiated several legal proceedings in which they sued the subsidiary Lycra, among others.
Lycra owes its creditors nearly $600 million. By selling Lycra, creditors hope to collect some of their debts. They expect to sell Lycra for at least $450 million.
Lycra belongs to a Dutch company, which is why the case was heard in the Netherlands. It is unclear what the consequences will be for Lycra workers, including those at the Lycra factory in the Dutch municipality of Kerkrade.