There’s always the by-hand approach… which I think may be the only way to retopo if you want all quads.
So let’s roll up our sleeves and get to it:
Select the outer edges using this menu. [Shift G]
Invert the selection and delete all edges that are not outer ones.
Fix any outline geometry that looks like it could become a problem later.
Section it off into a few basic sections. Just enough to do an inset.
Select all faces of the letter and do a couple of insets. [I]
Here there is some crowding at the foot of the “e”, so then address that by merging verts or doing knife cuts, dissolving edges, etc.
Select edges and fill into quads, stitching up the gap. For simpler glyphs you may be able to get away with using Grid Fill on parts.
On long edges you’ll probably need to make some loop cuts or subdivide multi or use the Knife tool to make it grid-like.
Once you at least have it in all quads you can add a Subdiv modifier set to Simple. Will give finer quads that will deform even better.
You’ll need to apply this before it will deform really well. Two levels of subdivision looked plenty smooth just now when I tested it.