Value fashion chain Peacocks is reportedly in talks with banks over refinancing its debts.

According to The Independent on Sunday, the retailer is looking at a restructuring less than a year after an£800 million refinancing deal last year when the credit crunch hit the debt markets.

A source told the paper: “Peacocks is looking to get more flexibility from the banks in order to increase the pace of its store-opening programme.” Peacocks is hoping to double its size over the next few years to more than 1,000 stores.

Peacocks is the latest in a long line of value fashion retailers to feel the effects of the consumer downturn. Ethel Austin, MK One and Select were all put into administration earlier this year after struggling in the highly competitive market, which is now dominated by Primark and the supermarkets.