The Board of Investment has assured that thousands of employees from Hela Clothing and Foundation Garments remain employed following a pre-arranged transfer to Emerald Clothing, even as parent company Hela Apparel Holdings pursues winding-up proceedings.
The Board of Investment (BOI) has moved to reassure workers that employment remains secure for 3,674 staff members previously employed by Hela Clothing (Pvt) Ltd and Foundation Garments (Pvt) Ltd. According to the BOI, these employees were transferred to Emerald Clothing (Pvt) Ltd as part of a group restructuring that was completed before recent legal filings, protecting them from the impact of ongoing court proceedings.
The workforce absorption occurred in two phases, with 2,504 employees transitioning on May 1, 2026, followed by a further 1,170 on June 1, 2026. The transferred group included 251 executives, 393 staff members, and 3,030 team members. All individuals retained their employment status with continuity of service, maintaining existing terms and conditions under their new employer.
The clarification from the BOI follows winding-up applications filed by Hela Apparel Holdings PLC, Hela Clothing Ltd., and Foundation Garments Ltd. in the Commercial High Court, which cited persistent liquidity difficulties as the reason for seeking court-ordered dissolution. The BOI emphasized that these legal proceedings do not apply to the transferred workforce at Emerald Clothing.
A BOI spokesperson stated that the agency prioritizes worker protection and will continue monitoring the transition while coordinating with Emerald Clothing to safeguard employee interests as the corporate restructuring process advances.
