Stretched to the Max, Shandong Ruyi Loses Control of Lycra

Key Takeaways:

• Three and a half years after spending $2.6 billion to buy 53% of Lycra, Shandong Ruyi has lost control of the fashion brand after creditors seized a majority of the company last week
• Ruyi’s brief foray into the global fashion industry has backfired spectacularly, with the company defaulting on debt it used to acquire global brands like SMCP and Lycra