Esprit pointed out the initial potential bidder for its China business offered “unfavourable terms and conditions”.

It added that it has received “several proposals and offers” from various independent third parties regarding potential cooperation and/or investments.

Esprit’s management is currently evaluating the financial and overall benefits that these proposals will bring to the business before making any legal commitment to any of them.

Esprit also shared that if any definitive agreement is entered into in respect of any of the proposals, it will make further announcement(s) in accordance with the rules governing the listing of securities on The Stock Exchange of Hong Kong Limited as and when appropriate.

Esprit announced its plan to exit its “loss-making” China arm of the business last month (June) as a way to inject cash into the wider company.

At the time it revealed it was 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.

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

Esprit also announced in June a plan to execute a new business model focused on wholesale and ecommerce in Europe following the closure of all its 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.

In May 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.