Hela Apparel Holdings Files for Court-Ordered Winding Up

Hela Apparel Holdings PLC and two of its subsidiaries, Hela Clothing Ltd. and Foundation Garments Ltd., have filed for court-ordered winding up in the Commercial High Court of the Western Province in Colombo. The legal filings follow a board resolution passed on August 4, 2026, after the company determined it could no longer meet its debt obligations.

In a disclosure to the Colombo Stock Exchange, the company explained that persistent liquidity constraints led to the decision. The board conducted a comprehensive review of assets, liabilities, cash flows, and creditor obligations before concluding that all viable alternatives had been exhausted. These failed attempts included seeking strategic investment options and pursuing debt restructuring.

The winding-up applications were formally submitted to the court on August 5, 2026, marking the end of the company's efforts to maintain solvency.