Republic, the branded young fashion chain, has asked its banks for increased financial flexibility as it contends with challenging trading conditions.

The business, which was acquired by private equity business TPG for £300m a year ago, has asked its banks for more headroom, according to the Financial Times.

It is understood that the business has not breached its covenants nor is it in danger of failing its covenant tests.

Republic is expected to publish results shortly which will show that the 110 store business is increasing sales, according to sources.

Republic wants to take advantage of good deals on the beleaguered high street to open more stores. When TPG bought the business from Change Capital it said it planned to double Republic’s store numbers to 200 in the UK and Republic of Ireland.

Republic is led by chief executive Tim Whitworth. Former Asda chief executive Andy Bond joined the business as chairman in January.