Mergers and acquisitions: Emerald Clothing acquires selected Hela factories

Emerald Clothing (Pvt.) Ltd. has stepped in to secure the continuity of key operations previously run by Hela Clothing (Private) Limited, amidst liquidity constraints, a statement by the company has revealed. 

Emerald Clothing said it has implemented an operational transition to ensure that manufacturing output and selected customer deliveries continue without disruption.

The company said several thousand jobs across multiple facilities are being supported through this transition, alongside ongoing commitments to international apparel buyers.

Key manufacturing facilities in Sri Lanka (Thihariya and Palapathwala), as well as design and development functions in the United Kingdom, and the United States, will continue to operate under Emerald Clothing’s management.

“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. “This is about maintaining confidence in Sri Lanka as a reliable sourcing destination. While the global economic situation poses challenges for the apparel export business, Emerald is confident that we can create long-term value from the assets and teams we acquire.”

Sri Lanka’s apparel industry, which accounts for a significant share of export earnings and employment, has faced pressure from shifts in global demand and local financial constraints. Industry participants have warned that disruptions to large manufacturers could have wider supply chain implications.

Emerald Clothing is part of a broader group with interests spanning manufacturing, retail, and brand development. The company said it will prioritise operational discipline, delivery reliability, and customer retention as it integrates the transitioned operations.

No further details were disclosed.

Source: The morning