UK fashion chain The Flannels Group has announced the approval of a Company Voluntary Arrangement (CVA) proposal that will save 12 stores but see three others close.

Of the creditors who voted, 93 were in favour of the proposal with one against.

In addition, Bill Dawson and Daniel Butters, partners of Deloitte, were appointed as Joint Supervisors of the CVA, a statement said.

It means a dividend of 60 pence in the pound will be paid to unsecured creditors, with certain trade creditors receiving an additional ten pence in the pound.

Also, landlords of the 12 continuing stores and the head office have agreed to a 20% discount of the principal rent in 2010 and a 10% discount in 2011. Landlords of the three stores to be closed will receive a payment of 10% of the remaining rent, with a de-minimus payment of six months' rent.

Neil Prosser, managing director and owner of Flannels, 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."

Dawson said that the CVA, which follows similar steps by Blacks Leisure Group this month, demonstrates that seeking advice at a sufficiently early stage can allow time for companies to develop and implement a successful restructuring plan.