Lycra, a company specialized in textile fibers that had declared bankruptcy in March, has completed its financial restructuring process and has announced its exit from Chapter 11 by eliminating over 1.2 billion dollars of long-term debt and securing more than 75 million dollars in new financing.
Control of the reorganized company is transitioning to the new shareholders, a group of global investment funds that have long been present in the company’s capital. Lycra explained that “together, they bring deep experience and a strong commitment to the company, its products, and its brands, and intend to build on the positive momentum generated by the restructuring process by investing in the company’s future success”.
Dean Williams new interim CEO and new board of directors
In addition to the news of the turnaround, Lycra also announces that Gary Smith, former CEO of the company, has left his position and has parted ways with the company. In his place, Dean Williams, the group’s chief financial officer, has been appointed interim CEO while the search for a permanent CEO is ongoing. Williams has been with the company since its founding over seven years ago and brings extensive experience in financial leadership, strategic planning, and operational management. The company has also appointed a new Board of Directors, with Bruce Rubin – a manager in the energy and chemical sector with over 45 years of experience in senior management roles – as the executive chairman of the Board.
Statements
Rubin stated: “With solid foundations now in place, The Lycra Company will be well positioned to strengthen operational excellence, accelerate innovation, deepen partnerships with customers, and reinvest in our high-quality products. We look confidently towards the future growth of our distinctive and recognized brands. We would like to thank Gary and the outgoing Board for their leadership in guiding the company through this critical period. The Board looks forward to working closely with Dean – a highly reliable and experienced operational leader – to lead the company into a new phase of success”.
The rest of the company’s executive team will remain in place and continue to collaborate with Williams and other key stakeholders to accelerate the company’s relaunch. “Exiting the process represents a pivotal moment for The Lycra Company,” stated Williams. “We will now be a financially stronger, more focused organization ready for growth. This milestone would not have been possible without the contribution of our employees, whose resilience, dedication, and customer focus have allowed us to navigate this process without operational interruptions. There is still work to be done to reach our full potential, but we have never been in a better position to achieve it“.
