Fashion conglomerate Shandong Ruyi has refuted claims of selling to textile maker Lycra and is instead looking to publicly float the business. Debt-laden Shandong Ruyi Technology Group (Ruyi) bought control of The Lycra Company (Lycra) from the US conglomerate Koch Industries for $2.6 billion in 2019, borrowing about $1 billion for the deal. Lycra's weakening financial performance has prompted some of its creditors to hire restructuring firm Alvarez and Marsal (A&M) as an adviser, fearing Lycra may default.
Ruyi believed Lycra would be better valued via an IPO, rather than a trade sale. Last year Ruyi had suggested it could list the company on China's new tech-focused STAR market. Ruyi holds 53.4 per cent of Lycra, with Koch Industries holding 22.2 per cent and Itochu Group subsidiary CFC holding 15.5 percent. Minority shareholders own the remaining 8.9 per cent.