Emerald Clothing Ltd has taken over selected operations previously run by Hela Clothing Ltd, in a transaction the company said is aimed at stabilising apparel exports and safeguarding employment as Hela faces liquidity constraints and legal proceedings.
The intervention covers manufacturing facilities at Thihariya and Palapathwala in Sri Lanka, along with design and development functions in the United Kingdom and the United States, all of which will continue to operate under Emerald’s management. The company said several thousand jobs across multiple facilities are being supported through the transition, and that ongoing commitments to international apparel buyers will be honoured.
“Our focus is execution and stability — keeping factories running, protecting livelihoods, and ensuring customers see no disruption,” said Mohomed Salim Suhurdeen, representing the investor group behind the transaction. “This is about maintaining confidence in Sri Lanka as a reliable sourcing destination.”
Emerald Clothing said it has implemented an operational transition to ensure manufacturing output and selected customer deliveries continue without interruption. The company added that it is confident it can create long-term value from the assets and teams it has acquired, despite a global economic environment that has put pressure on the apparel export business.
Sri Lanka’s apparel industry accounts for a substantial share of national export earnings and employment, and industry participants have warned that disruptions to large manufacturers could have wider supply chain implications. Hela Clothing, headquartered in Colombo with a multi-country footprint, was one of the country’s larger apparel exporters before its current liquidity difficulties surfaced.
Emerald Clothing said it is part of a broader group with interests across manufacturing, retail and brand development, and would prioritise operational discipline, delivery reliability and customer retention as it integrates the transitioned operations.
Hela Apparel Holdings PLC followed up on April 30 by formally confirming a separate but linked transaction: the divestment of its UK subsidiary Focus Brands Ltd. to the same Emerald-aligned investor group for USD 8 million, completing the parent company’s full exit. The company said its wholly-owned Mauritius subsidiary, Hela Brands Ltd., sold the entirety of its shareholding in Focus Brands Ltd. to Suhurdeen and Mohamed Salihu Fazeldeen, the shareholders of Emerald Investments Ltd. The Share Sale and Purchase Agreement was signed on April 14 and shareholders had authorised the disposal at an Extraordinary General Meeting on April 3. Hela Apparel shares closed unchanged at Rs. 2.90.
Manufacturing operations at Thihariya and Palapathwala, along with design and development functions in the UK and US, will continue under Emerald’s management, the buyer said, with a focus on maintaining export continuity, supporting employment and preserving relationships with international buyers.
