Surfwear retailer Billabong is looking for an alternative option after talks of a takeover with two private equity firms has ended.

The troubled company has been in discussions with Sycamore Partners and Altamont Capital exploring the opportunity for a possible takeover. However that change of control discussions have now concluded, Billabong said in a statement.

Instead the company has proposed discussions with the two private equity firms about potentially conduction a refinancing and asset sale transactions, which would be used to repay in the full the company’s existing debts.

“The refinancing is intended to provide the company with a comprehensive solution and an appropriate capital restructure, allowing it to continue its reforms agenda,” Billabong chairman Ian Pollard said.

“It’s in our intention to conclude these discussions as soon as practically possible while aggressively reducing costs across all our global operations.”

The company also reported that trading continues to remain weak, particularly in Australasia and Europe. On the plus side trading in the Americas is slightly ahead of plan for the half.

The February guidance provided by Billabong was for EBITDA in a range of $74 million to $85 million which included up to $4 million in equity from its share of Nixon. Excluding Nixon, the range would be $74 million to $81 million.