Womenswear retailer Whistles has found new financing as it fights to ease the strain placed on the business last year when Icelandic bank Glitnir collapsed.

Sources close to the company, which was bought by Baugur and former Topshop brand director Jane Shepherdson in January last year, said shareholders had offered new working capital to keep the company trading.

According to the Financial Times, gearing had been reduced to 25 per cent.

The Icelandic banking collapse caused working capital to dry up and suppliers became concerned as their credit insurance was removed.

Baugur and Shepherdson, along with a number of smaller investors, bought the chain from Icelandic-based fashion group Mosaic.