Fashion group Hembly International has agreed to buy a further 25% stake in Well Metro for HKD20.8m (US$2.66m), meaning it would own 95% of the Chinese retailer's shares. 

The companies entered into a Sale and Purchase Agreement through subsidiaries yesterday (26 June).

Well Metro, a distributor and retailer of apparel and footwear brands including Stonefly, Lotto, Sisley and Moschino, had a narrowed audited net loss of approximately HKD$0.5m before tax last year, having been established three years ago.

Hong Kong-listed Hembly said it was making the purchase, through a wholly-owned subsidiary, on the back of Well Metro's "expanding and extensive" distribution network in China, saying it has great potential for growth.