Hela Apparel Holdings PLC has petitioned the Commercial High Court for voluntary winding up after determining it can no longer service its obligations due to persistent cash shortages.
Hela Apparel Holdings PLC announced on Wednesday that it has sought a court-ordered winding up of its operations following a comprehensive review of its financial circumstances. The company's board determined that ongoing liquidity constraints have rendered the organisation unable to meet its debt obligations and continue normal business activities.
The decision was reached after the board examined multiple aspects of the company's position, including available assets, outstanding liabilities, cash reserves, debt levels and anticipated revenue flows. The board resolution was passed on August 4, with formal applications submitted to the Commercial High Court on the following day. Both of the company's subsidiaries—Hela Clothing (Private) Limited and Foundation Garments (Private) Limited—have also filed separate winding-up applications.
According to the company, directors had previously pursued several alternatives to closure, including restructuring initiatives, debt renegotiation schemes and external investment opportunities. The company stated that these options were either exhausted, declined by creditors or had become commercially unviable. The decision to proceed with winding up was presented as a final step taken only after exploring all available avenues to preserve shareholder value and limit negative impacts on creditors, staff members and other interested parties.
