In a decisive move to streamline operations and reinforce financial stability, Hela Apparel Holdings PLC has announced a significant step in its ongoing strategic restructuring by divesting two of its manufacturing sub-subsidiaries in Sri Lanka for a total consideration of LKR 2.7 billion.

As part of its broader turnaround strategy aimed at structural simplification and enhanced performance, Hela Apparel has transferred ownership of its wholly owned subsidiaries, Jinadasa Bennett (Pvt) Ltd and Foundation Bennette (Pvt) Ltd, to Singapore-headquartered Q Collection Pte Ltd. These entities collectively own the company’s manufacturing plants in Narammala and Mawathagama, as well as a warehouse facility in Uhumeeya.

Q Collection, a rising force in South Asia’s apparel manufacturing landscape, is known for delivering high-efficiency, high-quality production solutions to global fashion brands. While the transaction marks the exit of these two entities from the Hela Group, it also signifies the beginning of a broader strategic partnership between the two companies.

Under the agreement, Hela will continue to market the production capacity of the divested facilities to its global clients, with Q Collection fulfilling the orders. This arrangement is designed to ensure seamless service delivery and preserve revenue continuity, while freeing Hela to focus on its core operations and long-term competitiveness.

The transaction, which does not qualify as a major transaction under the Companies Act, received formal approval from the Board of Investment (BOI) of Sri Lanka on May 14, 2025. All employees at the affected facilities were offered uninterrupted employment with Jinadasa Bennett under their existing terms and without loss of accrued benefits.

Proceeds from the sale will be directed toward settling short-term liabilities and strengthening Hela’s balance sheet—an effort in line with the Group’s objectives to improve financial sustainability, boost supply chain agility, and reinforce its strategic position in core markets.

Despite the divestments, Hela maintains its presence in Sri Lanka with four manufacturing facilities, including the leased site in Palapathwala, and reaffirms its commitment to continued operations in the country.

Further updates on the restructuring initiative are expected as developments unfold.