FINANCIAL CHRONICLE – Hela Apparel Holdings of Sri Lanka is contemplating the sale of up to 65 percent of its subsidiary, Hela Brands Ltd (Mauritius), for $12 million as part of the company’s financial restructuring efforts.

“The proposed investor has explicitly indicated a consideration of USD 12 Million in the non-binding offer,” the company stated. The funds from this sale are intended to settle the creditors of its subsidiaries.

Hela Brands Ltd (Mauritius) serves as the holding company for Hela Brands Ltd (UK), which manages the group’s brand licensing operations. The group acquired Hela Brands Ltd (UK) through Hela Brands Ltd (Mauritius) in January 2024 for $10 million.

The organization is actively restructuring its debt with banks and creditors. Additionally, it is “engaged in discussions with a strategic investor regarding a potential funding which would enable the company to settle its liabilities and improve the liquidity of the entire Group.”

The net assets of Hela Brands Ltd (Mauritius) and its subsidiaries, on a consolidated level, amount to $26,539,418. The company plans to seek shareholder approval for the proposed sale at an extraordinary general meeting scheduled for February 3.

Furthermore, the company plans to initiate internal restructuring activities during February-March 2026, pending approval from lenders. This proposed restructuring includes the transfer of shares among several companies within the group.

(Colombo/Jan20/2026)