In a statement, Esprit said it had received “several proposals and offers from independent third parties” regarding potential cooperation and or investments in relation to its Greater China business that could benefit the group.

It confirmed that while no legally binding agreement or definitive agreement has been entered, it is currently in the final stages of negotiation with an independent third party to divest all trademarks and main domain names of its Greater China business in a potential $47.5m deal.

The Greater China region includes the People’s Republic of China, Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan.

Esprit said the Greater China arm is currently loss-making for the business.

Any funds raised would be used to inject capital within the group.

Earlier this month Esprit announced a plan to execute a new business model focused on wholesale and e-commerce in Europe following the closure of all loss-making operations in the region.

It had previously been reported to be looking for potential investors to rescue the European arm of its business and the news came as Esprit warned of a HK$1.9bn net loss for 2023 due to a tough European market.

Last month it filed for bankruptcy with a German court for its European subsidiaries, citing poor finances on the back of increased costs following the pandemic and international conflicts.

It marked the second time Esprit has filed for administration for its German subsidiaries in four years.

At the end of last year, Esprit issued a profit warning after it incurred a net loss of HK$1.9bn ($243m) for the year ending 31 December 2023.