Bridgepoint, the private equity owner of Fat Face, has reinvested an undisclosed sum into the lifestyle retailer to help reduce the lifestyle chain's debt by almost £22 million.
Bridgepoint along with Fat Face's management team are understood to have bought back £21.8 million worth of debt for the hevily reduced price of £12.2m.
The retailer's total debt now stands at £168.2m, down from £190m, which will reduce Fat Face's debt repayments and ease cashflow.
A spokesman for Bridgepoint said: "The retail sector is generally difficult at the moment, but we see Fat Face as a good investment opportunity."
Bridgepoint bought Fat Face for £360 million last year.
The £21.8 million debt repurchase includes a smaller reinvestment deal which completed in March. The March deal was the first example of a private equity group buying both equity and debt in a UK company.
Fat Face's latest report to creditors revealed the business increased sales and profits in July, compared to last year. However, current trading remains flat on last year.