TPG, the private equity house that owns Republic is poised to inject new cash into the fashion retailer, it is understood.

The funds will be used to develop Republic’s online business and open new stores, The Independent reported.

TPG bought Republic in April last year in a deal valued at £300m. The new investment follows the appointment of a restructuring team from Ernst & Young. TPG is thought to be keen to cut Republic’s debt and change its banking convenants, providing more flexibility to invest.

The retailer declined to comment.