Esprit Holdings Limited is reportedly in talks with an international private equity firm to secure new funding. The fashion company is struggling to maintain its European operations, resulting in the bankruptcy of its Swiss and Belgian subsidiaries.

"The potential investor has expressed interest in submitting a non-legally binding memorandum of understanding for a possible cooperation," Esprit told The Wall Street Journal. "The potential collaboration is subject to the signing of the definitive transaction agreement. Therefore, the potential collaboration may or may not proceed."

Esprit Holdings Limited recorded a loss of 2.5 billion Hong Kong dollars in FY23, leading to a comprehensive restructuring, with the Swiss branch being the first to have gone under.

The bankruptcy of Esprit Belgium was later also declared on 8 April, causing the closure of 15 Esprit shops and resulting in 148 employees losing their jobs. The closed branches are owned by the parent company, while 10 independent operators continue to operate as normal under the Esprit banner.

Operations in Germany are also being tinkered with, as 40 shops operated by the company’s franchise partner PTH Group further closed their doors. Esprit has terminated its contract with the German company.

This article originally appeared on FashionUnited.NL. Translation and edit by: Rachel Douglass.