Spandex Maker Lycra Plans to Sell Itself to Pay Its Looming Debt

Textile company Lycra Co. has entered a deal to sell itself to an undisclosed Chinese state-owned company in a transaction that would pay back all of its existing debt, according to people with knowledge of the matter.

Lycra notified creditors of the deal, the people added, asking not to be identified discussing a private matter.

A Lycra spokesperson didn’t respond to requests for comment.

The firm, which makes form-fitting elastic material used for yoga and cycling clothing, had been reviewing options to address its debt load over the past year, including reaching out to private credit lenders for financing, Bloomberg ...