(March 17): Spandex maker The Lycra Company has filed for Chapter 11 bankruptcy in Texas to implement a restructuring deal that will see most of its debt written off after creditors took control of the business. Chapter 11 bankruptcy caps years of financial stress for Lycra, which traces its roots back to 1958 when a group of scientists at DuPont created the original spandex yarn. In early 2025, the company said it was going to sell itself to another Chinese company and pay back all outstanding debt. By August, it became clear that the deal would not happen and Lycra’s creditors pushed ahead with acquiring the firm as part of a previously agreed Plan B. But Lycra’s financial position continued to deteriorate, meaning the restructuring originally envisaged by the backstop was no longer viable.

Source: The Edge Markets March 17, 2026 12:21 UTC