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Tag: Lycra

  • Fashion group Shandong Ruyi’s creditors seek control of Lycra

    Fashion group Shandong Ruyi’s creditors seek control of Lycra

    Creditors of debt-laden fashion conglomerate Shandong Ruyi Technology Group will seek control of Lycra after Ruyi defaulted on a $400 million loan it took from them to buy the fibre maker. A statement from the creditors on Monday said that Ruyi, known for its ambition to become the LVMH of China, has not been able to repay the Lycra loan since May 2019.

    The lenders include Hong Kong-based China Everbright Limited and Tor Investment Management, along with Seoul-based private equity firm Lindeman Partners and its affiliate Lindeman Asia.

    Their steps to assume full equity control of Lycra include the appointment of receivers for the assets of Lycra’s parents. Ruyi and Lycra did not respond immediately to requests for comment on Tuesday. Ruyi bought control of Lycra from U.S. conglomerate Koch Industries for $2.6 billion in 2019, borrowing about $1 billion for the deal.

    Reuters reported in 2020 that some of Ruyi’s creditors had hired a restructuring specialist to sound out potential buyers for Lycra after weakening the financial performance of the manufacturer of the eponymous stretchy material fears of a loan default.

    However, no deal materialised and Ruyi decided to look for alternative means of rescue. Ruyi, the roots of which are in the textiles industry, began a buying spree in 2015 that included SMCP, Aquascutum and Savile Row tailor Gieves & Hawkes, aiming to establish itself as a luxury fashion house.

    But the Chinese conglomerate has struggled under the weight of its debts and its financial difficulties worsened with the COVID-19 pandemic.

    French fashion group SMCP last month removed five board members associated with Ruyi after the conglomerate defaulted on bonds used to acquire shares in the French business.

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  • Avon launches a clean beauty range Avon Distillery

    Avon launches a clean beauty range Avon Distillery

    Avon has launched its new beauty brand Avon Distillery, which it claims delivers “clean beauty without compromise”.

    The Avon Distillery range includes nine concentrated make-up and skin-care products, seven of which are waterless. The new collections are formulated with pure and vegan-friendly ingredients, as its customers are now more aware of the impact of beauty products on their skin and on the environment.

    “Compelling concepts like clean beauty without compromise not only keep Avon relevant and on-trend in the fast-moving, modern beauty space, but help make our representatives a destination,” said James Thompson, chief beauty and brand officer at Avon.

    “It’s an important step for Avon and is the result of years of research to deliver the highest-performing clean-beauty products available on the market at an accessible price.”

    The five Avon Distillery skincare products have been launched already and the make-up range will follow next year.

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  • Shandong Ruyi buys Invista’s global Lycra business

    Shandong Ruyi buys Invista’s global Lycra business

    Chinese textile and retail investment company Shandong Ruyi has bought the US-based Lycra business for an undisclosed sum. Shandong Ruyi, whose retail investments include Aquascutum and SMCP (Sandro, Maje, and Claudie Pierlot), will take over the world-famous lycra brand, all assets and contracts relating to Lycra from current owner Invista and rename the business The Lycra Company.

    Lycra’s CEO Dave Trerotola said in a statement the company was fortunate to have been acquired by Shandong Ruyi.

    “[The] company shares our vision and our commitment to delivering high-quality products, technical expertise, and unmatched marketing support to our valued customers,” he said.

    The new company will operate as an independent subsidiary, and will continue to manufacture advanced fibre and technology solutions for the apparel and hygiene industries. The Lycra Company also owns a raft of consumer and trade brand names, including Lycra HyFit, Lycra T400, L by Lycra, Coolmax, Thermolite, Elaspan, Supplex, Tactel, and Terathane.

    “With the continued investment of Ruyi, we look forward to working with our customers to bring exciting innovations to market. Our new shareholder’s textile and retail experience will be a tremendous asset as we develop differentiated fibres that deliver the lasting performance benefits consumers have come to know and expect from our brands,” said Trerotola.

    The acquisition includes eight manufacturing facilities, four research and development labs, 17 offices located in 14 countries, and about 3000 employees. Current management and employees will continue in their roles.

    Yafu Qiu, chairman of the board of Shandong Ruyi, promised his company would continue to invest in The Lycra Company’s innovation pipeline and brands in order to grow the business.

    “As a spandex producer ourselves, we have admired the iconic Lycra brand for years, and we see the value The Lycra Company adds to our business. We believe its assets and capabilities are a perfect complement to our own and will help strengthen our position as a world-class, fully integrated textile company.”

    The Lycra Company’s legacy stretches back to 1958 with the invention of the original spandex yarn, Lycra fibre.

    Shandong Ruyi Investment Holding is the largest textile and apparel company in China, and ranks among the Top 100 Chinese multinational enterprises. It is headquartered in Jining, Shandong and operates 13 domestic industrial parks.

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