Iconic 68-year-old clothing pioneer files Chapter 11 bankruptcy

Joseph Shivers wanted to make better underwear women.

In many ways, he was the predeccessor of Sara Blakely, the woman who created Spanx, and the founding father of shapewear.

At first, he was "working on a project to develop a synthetic elastomer to replace rubber, then the mainstay of foundation garments,” according to the American Association of Textile Chemists and Colorists.

The idea was to create more comfortable underwear and girdles, but the original project failed.

“Unable to find a fiber that would snap back like rubber, the project was shelved in 1950, but Shivers had learned much about elastomers and his persistence paid off in the early 1950s when he used an intermediate substance to modify Dacron polyester,” the association wrote. “The polymer thickened, bounced and withstood high temperatures.” It came to have the name 'spandex,' which is an anagram of “expands.”

It was revolutionary and has gone on to become one of the most successful materials of all time, but the company behind it, The Lycra Company, has struggled and has now filed for Chapter 11 bankruptcy.

The Lycra company's path to Chapter 11 bankruptcy

Spandex has become so popular that many Americans likely don't know that like Spanx, it was a patented material owned by one company.

Marketed under the brand name Lycra, spandex wasn’t patented until 1958 or introduced to the public until 1962, according to Smithsonian Magazine.

It was an instant hit because it replaced rubber girdles, which were quite uncomfortable.

Lycra had a few important distinctions from rubber that gave it power in the foundation garment market, according to Chemical and Engineering News.

“Always blended with other natural and man-made fibers such as cotton, wool, silk and linen, spandex is lighter in weight than rubber thread. And unlike rubber thread, spandex does not break down with exposure to body oils, perspiration, lotions, or detergents,” the magazine wrote.

In recent years, however, Lycra Company has struggled.

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"A series of headwinds hit the company recently, starting with the disruption to supply chains and reduced consumer demand caused by the pandemic. Elevated inflation and growing competition from low-cost manufacturers in the years that followed, coupled with a weaker than expected recovery in key markets, piled on the pressure," The Edge Malaysia reported.

(The Lycra Company became a Chinese-owned brand in 2019).

In addition, the company was impacted by uncertainty from trade tariffs and the costs of refinancing and debt management efforts.

The Lycra Company bankruptcy key facts:

Lycra's financial problems have been evident since 2024.

"The firm has about $700 million in dollar bonds, €300 million of euro notes and a term loan of over $150 million due next year, according to data compiled by Bloomberg. To address that maturity wall, Lycra is getting financial advice from bankers at Houlihan Lokey Inc., people with knowledge of the matter told Bloomberg Law at the time.

Those discussions did not resolves the company's financial issues, eventually leading to its filing.

• Filing: The Lycra Company filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas on March 17, 2026, according to Bloomberg Law.
• Type of case: The company entered a prepackaged Chapter 11 restructuring supported by a majority of creditors, according to a company press release.
• Debt reduction: The restructuring plan will eliminate about $1.2 billion in long-term debt, the press release shared.
• Financing: The company expects more than $75 million in additional capital to support operations during and after the restructuring, added Bloomberg Law.
• Operations: The company said the Chapter 11 filing is not expected to disrupt operations, customers, suppliers, or its roughly 2,000 employees.
• Creditor support: Holders of the company’s senior secured term loan and secured notes agreed to support the restructuring plan, reported Fashion United.
• Ownership background: The Lycra brand was sold by Invista (a Koch Industries subsidiary) to China’s Shandong Ruyi in 2019 for about $2.6 billion, according to Reuters.
• Earlier restructuring: Creditors previously seized control of Lycra in 2022 after Ruyi defaulted on loans tied to the acquisition, Reuters reported.

"The prepackaged plan reflects a consensual agreement reached over the course of several months of productive discussions with the company’s key financial creditors. Given the near unanimous support of its stakeholders, the company expects to complete its financial restructuring expeditiously and emerge from the Chapter 11 process within 45 days," according to the press release.

Top uses for spandex (Lycra)

• Activewear and athletic apparel: Spandex is widely used in leggings, cycling shorts, running gear, and other sportswear because it stretches easily and returns to its original shape, according to Britannica.com.
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• Underwear and hosiery: The fiber is commonly blended into underwear, bras, and pantyhose to provide elasticity and improved fit, added Britannica.com.
• Swimwear: Spandex helps swimsuits maintain shape and flexibility while allowing full freedom of movement in water, according to Textile School.
• Stretch denim and everyday clothing: Many modern jeans and fitted garments contain small amounts of spandex to improve comfort and flexibility, according to Fibre2Fashion.com.
• Medical and compression garments: Spandex is used in compression stockings, orthopedic supports, and other medical textiles due to its durability and elasticity, added Textile School.

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