Hela factories partially acquired by Emerald Clothing

Emerald Clothing (Pvt.) Ltd. has taken steps to ensure the continuity of selected operations previously managed by Hela Clothing, following financial liquidity challenges faced by the company, according to an official statement.

The apparel firm said it has initiated an operational transition aimed at maintaining production output and fulfilling selected customer orders without interruption. The move is intended to minimise disruption across the supply chain while safeguarding ongoing commitments to international buyers.

Under the transition plan, several thousand jobs across multiple manufacturing facilities are expected to be supported. Key production sites in Sri Lanka, including Thihariya and Palapathwala, will continue operations under Emerald Clothing’s management, alongside design and development teams based in the United Kingdom and the United States.

Representing the investor group, Mohomed Salim Suhurdeen stated that the priority is maintaining operational stability and workforce continuity while ensuring customer confidence remains intact. He noted that despite global economic pressures affecting the apparel export sector, the company aims to build long-term value from the acquired operations.

Sri Lanka’s apparel industry, a major contributor to export earnings and employment, has been facing challenges due to shifting global demand and domestic financial constraints. Industry stakeholders have warned that instability among large manufacturers could have wider implications for supply chains and export performance.

Emerald Clothing, which operates within a broader group involved in manufacturing, retail, and brand development, said it will focus on operational efficiency, delivery reliability, and customer retention as it integrates the newly transitioned facilities.

No additional details regarding the arrangement were disclosed.