Musto seeks cash boost after covenant breach The Sunday Telegraph understands the company, which sells sailing and equestrian attire and boasts Zara Phillips as a brand ambassador, is locked in detailed talks with its lender, the Irish Bank Resolution Corporation. A source close to the business said: "The IBRC and Musto are in refinancing discussions, looking to bring in another party alongside the bank, shareholders and Phoenix [the private equity group which owns 50pc]." David McCorquodale, the KPMG partner behind the distressed sales of Blacks Leisure and Peacocks earlier this year, is understood to be handling the process. The corporate financier was called in three months ago to complete an internal business review, the first step in a financial restructuring. In 2009, Musto's holding company, Musto Topco, made a loss of £9.5m before tax, followed in 2010 by a £1.46m loss on sales of £30.7m. The next accounts will be filed at Companies House in September. Previous accounts show that, as at December 2010, Musto Topco had bank loans totalling £19.6m. Jonathan Pritchard, retail analyst at Oriel Securities, said: "The outdoor clothing market is very competitive. Whilst weather conditions should have been favourable for this type of retailer, money is still very tight for the average consumer. Making your existing jacket or boots last another season is probably more of a priority for most than buying new. Musto is not the only retailer currently struggling in a dire consumer economy. Game Group fell into administration on Monday, and Clinton Cards posted a half year loss to 29 January of £4.4m this week.