Flannels, the designer mini-chain, has written to suppliers disclosing its plans for a proposed Company Voluntary Arrangement, which would see it shutter three stores to ensure its survival.
Suppliers told Drapers they had received a letter from Flannels’ owner Neil Prosser, which detailed plans to close three Flannels stores and make reduced payments for stock. It is unclear at this stage which of the mini-chain’s 11 sites will be shuttered under the proposals or what payment proposals to suppliers are.
Deloitte is believed to be supervising the CVA process.
Flannels managing director and owner Neil Prosser said in a statement to Drapers: “This announcement details the steps required to implement our restructuring strategy to protect the ongoing viability of the company. With the support of Bank of Scotland, the directors are strongly of the view that the CVA proposal is in the best interests of the company and its stakeholders as a whole.”
For more see Friday’s edition of Drapers magazine.