(Yicai Global) Nov. 1 -- Chinese appeal company Shanghai Metersbonwe Fashion & Accessories will sell another fixed asset to replenish its cash flow after net loss widened in the first three quarters from a year earlier.

Metersbonwe will sell its three-story outlet in Wuhan, Hubei province, to a unit of its peer Youngor Group for CNY190 million (USD25.9 million), the Shanghai-based firm said on Oct. 30. The transaction will result in a return from asset disposal of about CNY55.4 million (USD7.6 million), a preliminary estimation of Metersbonwe showed.

Net loss at the clothing vendor widened 284 percent to CNY759 million in the nine months ended Sept. 30 from a year ago, as sales halved to CNY968 million, according to the latest earnings report the firm released on Oct. 30. Metersbonwe accumulated CNY2.2 billion (USD300.4 million) in losses between 2019 and last year.

The proceeds of the Wuhan asset sale will be used to supplement working capital, and they are expected to positively impact the financial and operating conditions, the company added.

In April last year, Metersbonwe sold its world-renowned fashion museum in Shanghai it operated for the past 15 years to Bacchus Liquor, a local liquor maker that produces ready-to-drink cocktail Rio, for CNY448 million to ease its cash flow pressure.

Metersbonwe, which faces its biggest financial difficulties since its inception in 1995, said in a public letter released in early August that it will scale down its operating strategy in an effort to turn profitable.

Metersbonwe [SHE: 002269] rose 0.6 percent to CNY1.69 (23 US cents) as of lunch break today after closing down 2.3 percent yesterday. The stock price has dived almost 33 percent so far this year.

Editor: Martin Kadiev