From about those parts;
From Collins humongous Eng. Dictionary, specially published for their 175 years birthday.

flannel:
1. a soft light woolen fabric

There's 8 definitions in total.

8. Brit. informal:verb; to talk evasively to; flatter in order to mislead


The same dictionary gives for merchant:
6 definitions of which
5. derogatary: a person dealing or involved in something undesirable: a gossip merchant

Maybe the two are also used combined?