Creditors of textile and fashion conglomerate Shandong Ruyi Technology Group Co. said that the Chinese company defaulted on a loan used to buy Lycra Co. and that they would seek to gain control of the stretchy-fabric maker.
The move is the latest financial challenge for Ruyi, the company stitched together by textile magnate Qiu Yafu, who had promised to challenge the likes of LVMH Moët Hennessy Louis Vuitton SE as a global luxury conglomerate. After a flurry of acquisitions in recent years, Ruyi has retrenched. Some of its creditors have moved to wrest control of brands Ruyi bought.
