Li Ning brand's troubles underscore the difficulty China has had in creating new global brands to match its manufacturing prowess.

Li Ning, the sports-apparel company's founder, and its executives declined to be interviewed, saying in a statement that "we remain committed to developing the Li Ning brand."

A new US partner plans a marketing relaunch in the US under the name Digital Li-Ning Co. that will first focus on online sales before an anticipated opening of brick-and-mortar stores.