TPG to inject more cash into Republic

The private equity firm behind Republic is poised to inject fresh funds into the fashion retailer, following the appointment of a restructuring team at the accountancy firm Ernst & Young.

TPG – which acquired the branded clothing chain in a deal worth £300m in April last year – is understood to be putting more capital into Republic to support its ongoing investment in areas such as new stores and online. As part of this process, the US private-equity house is looking to bring down the retailer's debt and reset its banking covenants to give it more financial flexibility to invest.

Andy Bond, the former chief executive of Asda, is the chairman of Republic, which has 110 shops. TPG and EY – which is conducting a limited review of Republic for the banks – declined to comment.