Lycra Files for Bankruptcy, Seeks Restructuring

0:00Here's more Durham news for March 17th. The Lycra Company, best known for its stretchy spandex fiber branded as Lycra, has filed for Chapter 11 bankruptcy protection. This happened on March 17th, 2026, in the U.S. bankruptcy court, for the Southern District of Texas. It's a pre-packaged restructuring plan, backed by most creditors, aimed at fixing the company's debt issues. Lycra got its start back in the 1950s, when Kim and Joseph Schivers worked on a synthetic alternative to rubber for more comfortable women's, underwear and girdles. Patented in 1958 and lost to the public in 1962, it quickly took off by blending easily with other fabrics and resisting body oils, sweat, and detergents. The material revolutionized active wear, swimwear, jeans, and shapewear, making clothes more flexible and comfy. But lately, the company has faced tough times, from pandemic supply chain woes, inflation, cheat competition, and trade issues.

1:01Chinese owners bought it in 2019, and creditors took control in 2022 after a loan default. Now, with strong support from key lenders, Lycra expects to wrap up the process in just 45 days. They'll get more than $75 million in new funding to keep things running smoothly. Operations should continue without a hitch for customers, suppliers, and about 2,000 employees worldwide. This move is meant to position the company for a stronger recovery in key markets. Support for this episode comes from our sponsor, see the description. If earbuds fall out when you sleep, this is for you, a pillow with built in sound, so L.I. SullyPillow.com