FINANCIAL CHRONICLE – The Colombo Stock Exchange (CSE) in Sri Lanka has issued a notification to Hela Apparel Holdings, indicating that trading could be halted as of June 18 if the company fails to address a compliance issue. An independent auditor has expressed a disclaimer of opinion regarding Hela Apparel’s financial statements for the fiscal year ending March 31, 2025, as reported by the exchange.
Hela Apparel has until June 16 to resolve the issue, which is linked to its unsuccessful attempts to finalize a debt restructuring for its operational subsidiaries due to the lack of necessary approvals from banks and creditors. The company’s securities have been listed on the Watch List since December 12, 2025.
In a statement to the market, Hela Apparel highlighted that a trading suspension lasting 12 months could lead to its shares being delisted from the exchange.
In a related corporate disclosure, Hela provided details on the final arrangement regarding the $8 billion divestment of its brand business to strategic investors. Although shareholders initially sanctioned the sale of the Mauritius holding company, the board decided to shift focus to the sale of its UK-based operating subsidiary, Focus Brands Limited, to enhance implementation efficiency.
The buyers, Mohamed Salim Suhurdeen and Mohamed Salihu Fazeeldeen, are associated with Emerald Investments (Private) Limited. The deal comprises a USD 2 million earn-out alongside a USD 6 million upfront payment.
Nonetheless, Hela anticipates a net cash amount of only $484,000 after significant adjustments, which include a $1.9 million deduction due to the purchasers taking over the Naula and Ukuwela factories, along with their associated gratuity and retirement liabilities. Additionally, approximately $1.6 million was deducted for airfreight penalties related to customer transactions.
The company confirmed that the transition of factory operations has safeguarded the jobs of more than 1,500 employees. Furthermore, Hela’s operations in Egypt will proceed under a management agreement until the end of the year. (Colombo/Jun11/2026)
