(Yicai Global) Nov. 28 -- Italian fashion house Giorgio Armani has struck a deal to purchase Chinese warehouse assets from two of its distributors in the country.

Hemei Group has agreed to sell the inventories and fixed assets from wholly-owned units Oulan International Trade and Zhenqiao Fashion, which will no longer distribute the Armani's products after a transition period for a combined CNY210 million (USD30.2 million), the Shenzhen-based enterprise said in a statement.

Hemei Commercial, a subsidiary of Hemei Group acquired a 100 percent stake in Oulan, a well-established international fashion brand distributor in China, last year and acquired an 80 percent stake in Zhenqiao for CNY800 million. Yuqiao distributes six brands under Giorgio Armani in the country's first-tier cities in China.

Hemei's distribution of Giorgio Armani did not achieve the expected results after the acquisition and affected the firm's international brand operation and layout, the statement said.
The proceeds from the sale of assets will be mainly used for liquidity and 73 stores are involved in the inventory clearance, which will have a short-term impact on Hemei's business scale, the statement added.

Founded in Shenzhen in 1994, Hemei Group was formerly known as  Haoningda Meters. It went public on the Shenzhen Stock Exchange in February 2010 as a distributor of luxury brands.