Hela Apparel Holdings
Corporate brand
UnclaimedHela Apparel Holdings was a Sri Lankan apparel-manufacturing holding company that supplied international fashion brands from a multi-country production network.
Last updated August 31, 2026
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Overview
Hela Apparel Holdings was a Sri Lankan apparel-manufacturing group and holding company operating under the Hela Clothing name. Its business centered on producing garments for international fashion labels, including Tommy Hilfiger, Calvin Klein, and Michael Kors, rather than selling primarily under a consumer-facing Hela brand. The group developed design and manufacturing capabilities spanning Sri Lanka, Ethiopia, Kenya, and Egypt, supported by design centres in Sri Lanka, the United States, France, and the United Kingdom. The operating business originated as Hela Clothing (Pvt) Ltd, incorporated in 1991 under the ownership of the Fielding Group. British entrepreneur Dominic McVey invested in the company in 2013 and recruited Sri Lankan business executive Dian Gomes to lead its development. During the late 2010s, the company faced high overheads and cash-flow pressure. It expanded its geographical footprint into Ethiopia and Kenya partly in response to these constraints and sought new capital from existing and external investors. An investor consortium injected US$10 million in November 2018, while A. R. Rasiah became chairman in December of that year. Gomes resigned in 2019, and McVey subsequently reduced much of his holding. Hela Apparel Holdings (Pvt) Ltd was established in 2018 and later accessed the public market through an initial public offering on the Colombo Stock Exchange in 2022. The IPO represented 20% of the company and was designed to raise LKR4 billion. It was reported as the exchange's largest issue since 2011 and attracted applications substantially above the offer size. The company became a constituent of the S&P Sri Lanka 20 Index in June 2022. It also received an AA(lka) rating with a stable outlook from Fitch Ratings in March 2022. At its peak, the group operated a large regional production network. It reported eleven manufacturing plants at one stage, including seven in Sri Lanka and two each in Ethiopia and Kenya, and later opened a twelfth plant in Egypt. Egypt was selected for its geographical position and potential to reduce delivery times to European and North American customers. For the financial year ended March 2022, the company reported revenue of LKR56 billion, representing a 75% increase from the previous year. In the same year, it obtained ISO 14064-1:2018 certification relating to greenhouse-gas quantification and reporting. The company subsequently experienced severe financial deterioration. Its audited financial statements for the year ended 31 March 2025 received a disclaimer of opinion, and its securities were placed on the Colombo Stock Exchange watch list in December 2025. For the nine months ended 31 December 2025, group revenue fell approximately 29% year on year to LKR43.95 billion and the group recorded a loss of LKR7.57 billion. By the end of 2025, it reported negative total equity of approximately LKR18.8 billion and accumulated losses of approximately LKR31.6 billion. Efforts to restructure operating-subsidiary debt did not obtain the required approvals. The group also attempted to raise liquidity through asset disposals, including the proposed divestment of its interest in UK-based Focus Brands Limited, while Emerald Clothing took over operations at several Sri Lankan plants. On 4 August 2026, the board resolved to seek court-ordered winding up of Hela Apparel Holdings and the subsidiaries Hela Clothing (Private) Limited and Foundation Garments (Private) Limited. The board stated that the group could no longer pay its debts and that restructuring and funding alternatives had been exhausted, rejected, or become commercially unviable. Winding-up applications were filed in Colombo on 5 August 2026. At the time, the group was reported to operate ten manufacturing sites across four countries and employ more than 17,000 people. The winding-up process marked the end of the company's operation as an active listed apparel group.
History
Hela's operating history began with the incorporation of Hela Clothing (Pvt) Ltd in Sri Lanka in 1991. The Fielding Group initially owned the business. In 2013, British entrepreneur Dominic McVey invested in the company and brought in Dian Gomes to lead it. The company developed as an export-focused apparel supplier, producing garments for internationally recognized fashion brands and building design and manufacturing capabilities beyond Sri Lanka. By 2017, Hela was carrying substantial overheads and experiencing cash-flow constraints. It expanded into Ethiopia and Kenya as part of its effort to grow and diversify its production base. Gomes proposed raising additional capital either through existing shareholders or by diluting approximately 30% of ownership in exchange for US$10 million from external investors. Relations between Gomes and McVey became strained, including over Gomes's proposal to suspend a US$1 million annual management fee paid to Ellestone Apparel, an investment firm led by McVey. An investor consortium ultimately provided US$10 million in November 2018. Hela Apparel Holdings (Pvt) Ltd was established in 2018, and A. R. Rasiah was appointed chairman in December of that year. Gomes left the company in 2019, while McVey divested much of his stake. The group pursued institutional growth and public-market financing during the early 2020s. It established or operated design centres in Sri Lanka, the United States, France, and the United Kingdom, while its factory network extended across Sri Lanka, Ethiopia, Kenya, and later Egypt. The Egyptian expansion was intended to place production closer to major customer markets in Europe and North America. In March 2022, Fitch Ratings assigned the company an AA(lka) rating with a stable outlook. Hela then listed on the Colombo Stock Exchange through a 2022 IPO offering 20% of the company for a targeted LKR4 billion. The offering was reported to be oversubscribed 5.4 times, with applications worth LKR21.8 billion, making it the largest issue on the exchange since 2011. Hela joined the S&P Sri Lanka 20 Index in June 2022. The company also pursued sustainability-related measurement. In 2022, it received ISO 14064-1:2018 certification from Sustainable Future Group for a framework covering the quantification and reporting of greenhouse-gas emissions. For the 2021/22 financial year, it reported revenue of LKR56 billion, a 75% increase over the preceding year. The expansion and public listing were followed by a marked deterioration in financial condition. The audited financial statements for the year ended 31 March 2025 received a disclaimer of opinion. In December 2025, the company's shares were placed on the Colombo Stock Exchange watch list. During the nine months ended 31 December 2025, revenue declined by approximately 29% to LKR43.95 billion from LKR61.55 billion in the comparable period, while the group recorded a loss of LKR7.57 billion. At the end of 2025, total equity was negative by approximately LKR18.8 billion and accumulated losses were approximately LKR31.6 billion. Hela held discussions with financial institutions concerning debt restructuring for operating subsidiaries, but the necessary approvals were not secured. The group attempted to improve liquidity through asset disposals, including its interest in Focus Brands Limited in the United Kingdom. Several Sri Lankan manufacturing operations were taken over by Emerald Clothing (Pvt) Ltd. In June 2026, Sri Lanka's Securities and Exchange Commission declined a request to defer the suspension of trading in Hela securities further. On 4 August 2026, the board concluded that Hela Apparel Holdings and its principal subsidiaries could not pay their debts or continue operating and resolved to seek court-ordered winding up. Applications concerning Hela Apparel Holdings, Hela Clothing (Private) Limited, and Foundation Garments (Private) Limited were filed with the Commercial High Court of the Western Province in Colombo on 5 August 2026. The group then operated ten manufacturing sites in four countries and employed more than 17,000 people. The proceedings ended Hela's existence as an active apparel-manufacturing listed group.
- 2026
Winding-up applications filed
[1]The board resolved to seek court-ordered winding up on 4 August, and applications were filed in Colombo on 5 August.
- 2025
Financial statements receive disclaimer of opinion
[1]The audited accounts for the year ended 31 March 2025 received a disclaimer of opinion, followed by placement of the shares on the exchange watch list.
- 2022
Colombo Stock Exchange listing
[1]The company listed through an IPO offering 20% of its equity and targeting LKR4 billion in proceeds.
- 2022
Egyptian manufacturing expansion
[1]The group opened its twelfth manufacturing plant in Egypt to improve access to European and North American markets.
- 2022
Sustainability certification
[1]Hela received ISO 14064-1:2018 certification for greenhouse-gas quantification and reporting.
- 2018
New holding company and capital injection
[1]Hela Apparel Holdings (Pvt) Ltd was founded, an investor consortium injected US$10 million in November, and A. R. Rasiah became chairman in December.
- 2013
Dominic McVey invests in Hela
[1]British entrepreneur Dominic McVey invested in the company and engaged Dian Gomes to lead its development.
- 1991
Hela Clothing incorporated
[1]Hela Clothing (Pvt) Ltd was incorporated in Sri Lanka under the initial ownership of the Fielding Group.
Products and positioning
A vertically coordinated, export-oriented apparel manufacturer serving international fashion brands through design centres and production facilities in South Asia and Africa.
Apparel manufacturing
International branded apparel manufacturing
Hela manufactured garments on behalf of international fashion brands rather than focusing on a broad proprietary consumer label. Its customer portfolio included Tommy Hilfiger, Calvin Klein, and Michael Kors. The group combined design, product development, sourcing, and factory production across a multi-country network.
Intimate apparel
Foundation garments
Through its operating companies, including Foundation Garments (Private) Limited, the group supplied foundation and intimate-apparel production capabilities. Public reference material does not specify individual product names or collections.
Apparel services
Apparel design and development services
The group operated design centres in Sri Lanka, the United States, France, and the United Kingdom. These centres supported the development and supply of garments for brand customers, connecting design and product-development work with manufacturing facilities in several countries.
Brand decisions
2026
Seek court-ordered winding upOtherBackground
The group reported severe losses, negative equity, liquidity constraints, and unsuccessful debt-restructuring and funding efforts.
Action taken
The board resolved on 4 August 2026 to seek winding up of Hela Apparel Holdings and two principal subsidiaries, filing applications in Colombo on 5 August.
Aftermath
The decision ended the group's operation as an active listed apparel company and initiated court proceedings under Sri Lanka's Companies Act No. 7 of 2007.
Group loss. LKR7.57 billion loss (Nine months ended 31 December 2025)
2022
Initial public offering on the Colombo Stock ExchangeM&ABackground
Hela sought public-market funding after expanding its international apparel-manufacturing platform.
Action taken
The company offered 20% of its equity with a stated target of raising LKR4 billion.
Aftermath
The IPO was oversubscribed 5.4 times, with applications worth LKR21.8 billion, and the company became publicly traded in Sri Lanka.
IPO target proceeds. LKR4 billion (2022 IPO)
2022
Open a manufacturing plant in EgyptStrategyBackground
The group sought to diversify its production base and improve delivery times to Europe and North America.
Action taken
Hela opened a plant in Egypt, described as its twelfth manufacturing facility.
Aftermath
The expansion increased the group's geographic reach, although later financial pressures led to contraction and restructuring efforts.
2018
Raise external capital to support expansionStrategyBackground
The company faced high overheads and cash-flow constraints while expanding its manufacturing footprint into Ethiopia and Kenya.
Action taken
Management pursued capital from shareholders and external investors, and an investor consortium ultimately injected US$10 million in November 2018.
Aftermath
The capital supported the group's continued development before its later public listing and subsequent financial difficulties.
Capital injection. US$10 million (November 2018)
Sources1 sources
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