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Texas City Today
By the People, for the People
Iconic Lycra Company Files for Bankruptcy to Eliminate $1.2 Billion in Debt
The 68-year-old spandex inventor plans to emerge from Chapter 11 in 45 days with a stronger financial foundation.
Mar. 19, 2026 at 4:21am
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The Lycra Company, the inventor of spandex and one of the world's most iconic textile innovators, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. The filing is part of a prepackaged restructuring agreement that will eliminate approximately $1.2 billion in long-term debt while providing more than $75 million in new capital to support operations during and after the restructuring process.
Why it matters
The Lycra Company's bankruptcy filing underscores the broader financial pressures facing the global textile supply chain. Despite inventing a material that transformed multiple industries and remains ubiquitous in modern apparel, the company has struggled under the weight of debt accumulated through ownership changes and macroeconomic headwinds. For fashion brands and consumers, the company's assurances of business continuity are critical as Lycra fiber and its associated technologies remain essential components in activewear, shapewear, denim, and performance apparel produced by countless brands worldwide.
The details
The filing, made on March 17, 2026, is part of a prepackaged restructuring agreement with creditors that will eliminate approximately $1.2 billion in long-term debt while providing more than $75 million in new capital to support operations during and after the restructuring process. The company expects to emerge from bankruptcy within 45 days. The road to bankruptcy has been long and turbulent, with the company facing trade tariff uncertainty, increased competition from low-cost manufacturers, and ongoing legal disputes with former owners.
- The Lycra Company filed for Chapter 11 bankruptcy protection on March 17, 2026.
- The company expects to emerge from bankruptcy within 45 days.
The players
The Lycra Company
The 68-year-old inventor of spandex and one of the world's most iconic textile innovators.
Gary Smith
The CEO of The Lycra Company.
Joseph Shivers
The DuPont chemist who invented spandex in 1958 while attempting to develop a synthetic elastomer to replace rubber in foundation garments.
Shandong Ruyi Textile and Fashion International Group Limited
The Chinese textile conglomerate that acquired The Lycra Company in 2019.
What they’re saying
“Today marks a significant milestone for The Lycra Company as we are taking decisive action to meaningfully reduce our debt and strengthen our financial foundation. By taking this step, we will continue serving our customers, supporting our partners, and providing the high-quality products on which they rely.”
— Gary Smith, CEO of The Lycra Company
What’s next
The company expects to emerge from bankruptcy within 45 days.
The takeaway
The Lycra Company's bankruptcy filing highlights the financial challenges facing the global textile industry, even for iconic brands that have revolutionized fashion. However, the company's plan to emerge from bankruptcy with a stronger financial foundation suggests it will continue to be a key supplier of essential materials to the apparel industry.
