Neil Prosser, owner and managing director of designer mini chain Flannels, which successfully completed a Company Voluntary Arrangement (CVA) this week, said he had been “humbled” by the whole experience and was “overwhelmed by the support shown by suppliers and landlords”.
Prosser told Drapers that the CVA, which enabled him to close three stores, in Liverpool’s Metquarter, Birmingham Bullring and at 55 King Street in Manchester, would make the business “stronger and fitter”.
Flannels is understood to have been hit by the downturn in consumer spending in the designer sector coupled with high rents. It hired restructuring specialist Deloitte last month to advise it on a CVA proposal, which offered suppliers with retention of title rights a deal for 70p in the pound.
Landlords have also agreed to give Flannels a 20% discount on principal rent in 2010 and a 10% discount in 2011 on its remaining 12 stores.
Prosser added: “By extracting the duplication of stores in certain cities, it will effectively consolidate our position and ensure future growth and success. We see the future of Flannels as positive. Trading will remain challenging; however, the financial restructuring will ensure the success of the Flannels Group.”