Flannels closes Midlands store in CVA

CREDITORS of upmarket fashion retailer Flannels have backed its CVA plan.

The deal secures the future for the chain, a favourite with footballers such as Wayne Rooney, but means the closure of the shop in Birmingham’s Bullring shopping centre and two other under-performing sites in the North West.

Bill Dawson and Daniel Butters, partners at Deloitte, were appointed as joint supervisors of the CVA.

Landlords of the three stores to be closed will receive a payment of 10% of the remaining rent due under the terms of the lease, with a payment of six months’ rent.

Flannels’ MD and owner Neil Prosser said: “The result of the voting demonstrates the fairness of our proposal that was put to creditors.

“We have worked hard to balance the interests of all creditors as part of this process.  The proposal allows the business to restructure to a size that mirrors the extraordinary trading conditions that retailers are currently facing.  Being able to restructure will preserve the ongoing viability of our business.”

Bill Dawson, added: “This is good news for creditors as the CVA allows the company to remain as a going concern and maintain its trade.  It gives the company and its stakeholders greater certainty and job security to around165 employees.

“The CVA demonstrates that seeking advice at a sufficiently early stage can allow time for companies to develop and implement a successful restructuring plan.”